US Stock Market Crash: US President Donald Trump blamed Democrats for the sharp sell-off on Wall Street following the midterm elections, claiming that the election results had triggered one of the worst days in stock market history. In a series of posts on his social media platform Truth Social, Trump expressed disappointment over the market downturn and warned that Americans’ retirement savings had taken a hit.
“The Stock Market crashed today because the Dumocrats had a big Tuesday — So sad to see, you only have yourselves to blame!” Trump wrote on Truth Social.
In another post, the US President described the market decline as one of the worst in history, directly linking it to the outcome of the midterm elections.
He also expressed frustration over the reversal in market performance, claiming that significant efforts had gone into taking US equities to unprecedented levels.
“It took so much work to get us to a level that no one has ever seen before, and then this. Your 401(k)s have, therefore, dropped. Remember, it wasn’t Republicans, it was Dumocrats,” he wrote.
A 401(k) is an employer-sponsored retirement savings plan in the United States that allows employees to invest part of their earnings for retirement. A decline in stock prices can reduce the value of retirement portfolios invested in equities.
Despite the market turmoil, Trump expressed confidence in an eventual recovery.
“Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN!” he added.
US stock market crash: Dow plunges over 1,800 points
Trump’s remarks came after US stock markets recorded steep losses on Thursday, November 5, reversing gains from the previous session following the Democrats’ sweeping victory in the midterm elections.
The Dow Jones Industrial Average plunged 1,833 points, or 3.44 per cent, to close at 51,523.06. The S&P 500 declined 4.36 per cent to 7,353.73, while the technology-heavy Nasdaq Composite tumbled 5.52 per cent to settle at 24,315.00, according to the Associated Press.
According to Reuters, the sharp decline was driven by heavy selling in technology and artificial intelligence-related stocks as investors reassessed the implications of the Democrats’ midterm election victories for the AI industry.
Concerns that Democratic control of Congress could lead to tighter scrutiny of AI infrastructure and restrictions on data centre development weighed on semiconductor companies and technology stocks.
The Philadelphia Semiconductor Index plunged around 12 per cent, while Nvidia shares declined approximately 9 per cent. The sell-off wiped out an estimated $2.5 trillion in market value from the Nasdaq, Reuters reported.
The downturn marked a sharp reversal from Wednesday, November 4, when US equities rallied following the election results. Investors had initially welcomed the reduction in political uncertainty, even as data centre-related stocks came under pressure over concerns about potential regulatory changes.
While Trump directly blamed Democrats for the market crash, market reports identified concerns over AI investments, technology valuations and possible restrictions on data centre expansion as major factors behind the sell-off.