Former President Donald Trump sharply criticized the Democratic Party following a significant stock market downturn, a day after Democrats achieved substantial gains in the midterm elections. Trump blamed the "Dumocrats," a term he coined, for the market's $2.5 trillion loss, suggesting their victories would lead to increased government regulation and potentially slow the construction of data centers across America.
In posts on Truth Social, Trump stated, "The Stock Market crashed today because the Dumocrats had a big Tuesday — So sad to see, you only have yourselves to blame!" He further elaborated, "The Stock Market suffered one of the Worst Days in History based on the results of the Election." He pointed to the Democrats' gains in the House and Senate as the cause, noting that their control could impact industries like artificial intelligence and technology, which have been driving economic growth.
Trump's remarks contrasted with market performance earlier in the week. On Wednesday, following the initial release of midterm results, stock markets had seen gains. Trump had previously taken credit for a market surge on Wednesday, posting on Truth Social, "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!"
On Thursday, shares of major technology companies, particularly those involved in artificial intelligence, data centers, and microchips, experienced steep declines. Nvidia fell 9.3 percent, Broadcom dropped 10.5 percent, and Qualcomm was down 9.5 percent. The tech-heavy Nasdaq Composite ended the day down 5.5 percent, its worst one-day decline since April 2025, while the S&P 500 index fell 4.3 percent. These indices saw their worst one-day declines since President Donald Trump's 'Liberation Day' tariffs announcement in April 2025. In total, Wall Street and retirement accounts faced approximately $2.5 trillion in paper losses.
Analysts suggested that the selloff was a combination of market participants pricing in the midterm election results and recent disappointing earnings reports from tech companies, such as Anthropic and OpenAI. The high level of leverage in the market, with margin debt hitting a record $1.5 trillion in June, also contributed to the volatility. U.S. households hold a record 48 percent of their financial assets in stocks, a figure higher than during the dot-com bubble.
Elon Musk, who reportedly invested nearly half a billion dollars in Republican candidates for the 2026 midterms, saw significant losses. Tesla shares were down almost 12 percent on Thursday, and combined with previous losses, have dropped nearly 15 percent in two days, reducing Musk's fortune by approximately $39.4 billion. SpaceX also saw losses exceeding 12 percent since the election, totaling $113 billion in paper losses for Musk, bringing his total post-election paper losses to $152 billion.
Looking ahead, Democratic Party leaders have indicated plans for stricter regulation of AI, including mandatory safety testing, federal oversight of advanced AI models, restrictions on data center expansion, and measures to protect against rising electricity costs. Experts anticipate it will take months to fully understand the market's reaction to these potential policy shifts. Additionally, a wave of local anti-AI ballot measures that restrict or prevent data center construction passed overwhelmingly in various areas, signaling public opposition to such developments.