Donald Trump pointed the finger at Democrats after Wall Street suffered a $2.5 trillion wipeout, just 24 hours after the party’s sweeping midterm victory turned the political map blue.
The Democratic wins sent shock waves through financial markets. With the party poised to control the Senate, investors are weighing the possibility that officials could slow or halt plans for new data centers across the United States.
Trump blamed the incoming Democratic majority in a Thursday post on his Truth Social platform.
“The Stock Market suffered one of the Worst Days in History based on the results of the Election,” Trump wrote.
Democrats have secured 40 House seats, with 27 races still undecided. They have also captured seven Senate seats, while two additional contests remain tilted in their favor.
“Such a sad thing to watch! 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,” Trump added.
The President also claimed credit for creating the “Dumocrat” nickname while campaigning for Republican candidates.
“Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE.”
Donald Trump blamed the soon to be in power Democrat Party after the market took a $2.5 trillion hit just one day after the Democrats’ blue tsunami drowned Republicans in the midterm elections
The nationwide Democratic victories triggered financial carnage for Wall Street, as their control of the Senate raises the possibility that governments may pause construction of more data centers across America
Thursday’s dramatic selloff was a sharp reversal from the gains seen on Wall Street the previous morning, after Democrats won control of both chambers and gained the ability to block key elements of Trump’s legislative agenda.
Markets initially moved higher as results came in from around the country, even as Republicans absorbed a significant political defeat.
Trump celebrated that earlier rally on Truth Social, presenting it as evidence of his economic record: “Stock Market just hit another Record High — 91 Days in just a short period of time — Less than two years. Your 401(k)s are through the roof. Record Setting All!”
The latest losses were concentrated in artificial-intelligence stocks, particularly companies that supply data-center equipment and advanced computer chips.
Investors fear that a Democratic-led government could reduce spending on AI processors and other cutting-edge technologies that have become a major source of growth for the U.S. economy.
Chipmakers Nvidia and Broadcom were among the biggest casualties. Nvidia fell 9.3 percent, Broadcom dropped 10.5 percent and rival Qualcomm ended the session 9.5 percent lower.
The technology-focused Nasdaq Composite plunged 5.5 percent, pushing the index firmly into correction territory after four weeks of gradual declines. The benchmark S&P 500 fell 4.3 percent.
For both indexes, it was the steepest single-day drop since President Donald Trump rattled global markets in April 2025 with his so-called “Liberation Day” tariffs.
Today’s stock massacre is a far cry from the numbers Wall Street saw on Wednesday morning, after the Democrats seized control of both houses in a victory that gave them the power to block President Trump’s legislation
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By the close of trading, Wall Street and ordinary Americans’ retirement accounts were facing an estimated $2.5 trillion in paper losses.
Jakub Rochlitz, an analyst at eToro, said the most immediate explanation for the plunge was that investors were rapidly adjusting their expectations after the midterm results.
“But the first domino to fall was Anthropic’s and OpenAI’s growth numbers, which failed to impress investors at the beginning of October,” Rochlitz told the Daily Mail.
“That made the market more sensitive to negative news, which has piled up in recent days.”
Nic Puckrin, a former Goldman Sachs analyst, said the election result did not introduce an entirely new concern. Instead, it may have been the final trigger for a market that was already vulnerable.
“The midterm election result didn’t really create a new fear, it was just the gust of wind that pushed over the house of cards that was already getting shaky,” Puckrin told the Daily Mail.
The selloff was intensified by the unusually high level of borrowing among investors, known as leverage.
Several measures suggest speculation has reached levels not seen since the dot-com bubble. Margin debt—the money investors borrow to buy stocks—hit a record $1.5 trillion in June, approximately 50 percent higher than a year earlier.
Federal Reserve data also shows that U.S. households now hold a record 48 percent of their financial assets in stocks. At the height of the dot-com bubble, the figure stood at 38.7 percent.
“What the markets were missing was a spark to start the selloff. It seems that the mix of the election result and some disappointing tech earnings results was enough to tip markets over the edge,” Rochlitz said.
Elon Musk was among the most prominent individual losers after spending nearly $500 million backing Republican candidates during the 2026 midterm campaign.
Tesla shares dropped almost 12 percent on Thursday. Including the sharp decline recorded after the election, the electric-vehicle maker has lost nearly 15 percent in two sessions, reducing Musk’s fortune by roughly $39.4 billion.
SpaceX has also fallen more than 12 percent since the election, representing a further $113 billion decline in Musk’s wealth. Combined, the losses amount to approximately $152 billion in paper value.
Democratic leaders have promised to pursue tougher artificial-intelligence rules when they assume control of Congress in January 2027.
Their proposed agenda includes compulsory safety evaluations, federal supervision of advanced AI systems, limits on data-center growth and measures aimed at shielding households from higher electricity costs.
“It will take months for the market to figure out what impact the Democrats will really have on the AI buildout, and the impact on data center construction will take even longer to actually materialize,” Puckrin said.
Investors will next look for guidance from major cloud-computing companies on capital spending. They will also be watching to see whether those firms move more planned infrastructure projects overseas, including to Asia or the Middle East.
At the local level, a broad series of successful anti-AI ballot measures has highlighted strong public resistance to data-center development. Voters in communities across the country backed proposals designed to limit or block new projects.
The measures include outright bans, temporary construction pauses, limits on energy use and rules requiring local residents to approve projects before construction can begin.