Politics

Trump Accuses Democrats of Causing Market Sell‑Off After Midterm Wins

By Swati Gandhi

After Democrats won sweeping victories in the U.S. midterm elections, President Donald Trump blamed them for a sharp decline in Americans’ 401(k) portfolios and a broader market sell‑off, particularly in artificial‑intelligence and technology stocks. In a social‑media post, Trump wrote that the stock market suffered one of the worst days in history because of the election results, stating that 401(k) balances had dropped and that the downturn was caused by Democrats, not Republicans. He added that the market would recover and that America would become “bigger and stronger than ever before.”

Trump’s remarks came as the Nasdaq 100 fell more than 6 % and the S&P 500 lost 4.4 % on Thursday, with chip and other AI‑linked shares among the hardest hit. Investors feared that Democratic control of both houses could lead to tighter regulations on AI infrastructure and data‑center development, adding pressure on high‑valuation AI stocks. The bond market rose, with Treasury yields falling to their lowest levels since early September as investors sought safer assets.

The market decline was the worst trading session for the Nasdaq since March 2020, wiping out $2.3 trillion in market value. The Philadelphia Semiconductor Index fell 12 %. The bond market had its strongest monthly performance in more than two years in October, reflecting concerns about the long‑term sustainability of heavy AI‑related capital expenditure.

Trump, who has previously defended the AI industry and promoted a light‑touch regulatory approach, said he would accept the midterm results but blamed Democrats for the Republican Party’s losses. He also blamed high fuel prices for the party’s performance.

The article was written by Swati Gandhi, a digital journalist with experience covering international and geopolitical issues, and was reported with Bloomberg inputs.