U.S. President Donald Trump blamed Democrats for the sharp drop in U.S. stock indexes following their victory in the midterm elections. In a post on Truth Social, he said the market had crashed because of the election results and wrote: “The Stock Market is crashing today because the Democrats had a big Tuesday. So sad to watch, your fault!!!” Trump used the insulting spelling “Dumocrats” for the Democratic Party.
The November 5 decline came two days after the elections, in which Democrats won control of both the House of Representatives and the Senate. The S&P 500 fell 4.4%—its weakest daily performance since April 2025. The Dow Jones lost 1,833 points, or 3.4%, while the Nasdaq Composite dropped 5.5% and entered correction territory.
The Sell-Off Followed a Stock Market Rally
The market move did not begin with an immediate post-election crash. On November 4, when the results showed that Democrats would take control of Congress, the S&P 500 rose 1.6%, the Dow Jones gained 3%, and the Nasdaq added 1.4%. It was the strongest day for the broader market in three months.
The subsequent sell-off was concentrated mainly in the technology sector and companies involved in building data centers for artificial intelligence. According to Reuters, investors were assessing the possibility that the new Congress would introduce stricter rules for artificial intelligence, cryptocurrencies, and energy consumption. Analysts also pointed to broader concerns about the high costs of AI infrastructure and the future returns on those investments.
Democratic Congress Faces the Administration
The Democrats’ victory will result in divided government in Washington during the final two years of Trump’s term. The new balance of power could make it more difficult to advance the White House’s legislative initiatives and strengthen congressional oversight of the administration.
Trump’s claim that the election result caused the stock market crash remains a political assessment. Trading data showed that the market initially reacted positively to the Democrats’ victory, while the sharp decline came a day later and was concentrated mainly in artificial intelligence-related stocks.
Sources: axios.com, apnews.com