The president delivered his criticism on Truth Social on Thursday evening, two days after Democrats captured control of both chambers of Congress. His remarks followed a sharp sell-off in technology shares that pushed the Nasdaq Composite down 5.52 per cent, its steepest daily decline in about 19 months.
“The Stock Market crashed today because the Dumocrats had a big Tuesday — So sad to see, you only have yourselves to blame!” Trump wrote, using a derogatory variation of the Democratic Party’s name.
In a separate message, Trump described the decline as one of the market’s worst days and linked it directly to the election results. He said Americans’ retirement savings had suffered and insisted Republicans were not responsible.
“Your 401(k)s have, therefore, dropped. Remember, it wasn’t Republicans, it was Dumocrats,” he wrote. Trump also predicted that markets would eventually recover, although he offered no evidence establishing that the election outcome alone caused Thursday’s losses.
The Nasdaq Composite closed at 24,315.00, entering correction territory, defined as a fall of at least 10 per cent from a previous high. The broader S&P 500 dropped 4.36 per cent to 7,353.73, while the Dow Jones Industrial Average lost 1,833 points, or 3.44 per cent, to finish at 51,523.06.
The S&P 500 recorded its biggest one-day decline since the market turbulence following Trump’s sweeping tariff announcements in April 2025. Losses extended across all 11 sectors of the benchmark, although technology companies and businesses linked to artificial intelligence infrastructure suffered particularly heavy selling.
Investors were reassessing the outlook for artificial intelligence following Democratic gains in Congress and state governments. Several successful Democratic candidates had campaigned for stronger oversight of data centres, whose electricity consumption, water requirements and effects on local communities have become contentious political issues.
Democrats gained seven Senate seats and at least 39 House seats, alongside five governorships, in Tuesday’s elections. Their incoming congressional majorities could subject major technology companies to closer scrutiny and complicate efforts to accelerate the construction of facilities supporting artificial intelligence.
Nevertheless, the scale of Thursday’s retreat reflected more than a single political development. Questions about the enormous cost of building artificial intelligence systems, the pace of potential returns and the valuations assigned to technology shares had already unsettled investors before the elections.
Chipmakers bore the brunt of the selling. Nvidia shares declined approximately 9 per cent, while memory manufacturer SanDisk lost about 22 per cent. The Philadelphia semiconductor index fell roughly 12 per cent, one of its largest daily declines on record.
Melissa Brown, global head of investment decision research at SimCorp, said investors appeared to be recognising that some newly elected lawmakers and governors wanted to slow artificial intelligence infrastructure development. That prospect added a regulatory dimension to existing concerns about spending and profitability.
The downturn also represented a reversal of Wednesday’s market rally, when shares advanced as election results became clear. The Dow rose more than 1,000 points during that session, while the Nasdaq and S&P 500 also gained ground.
Trump had welcomed that earlier advance, highlighting stock market records and gains in Americans’ retirement accounts. His contrasting statements underscored the political significance he attaches to share prices, which he has repeatedly presented as evidence of his administration’s economic performance.
The president’s explanation did not distinguish between investors’ concerns about future regulation and the broader pressures affecting financial markets. Elevated borrowing costs and uncertainty surrounding corporate spending on artificial intelligence have also influenced trading, while the war involving Iran has added pressure through higher energy prices.
The market’s reaction also highlighted uncertainty about how quickly the incoming Democratic majorities could translate campaign commitments into legislation, particularly where proposed restrictions would affect investment decisions already made by technology companies.
Market volatility spread beyond the United States on Thursday. European shares weakened, and Asian markets faced pressure as investors reduced exposure to technology companies. The dollar was little changed, while oil prices rose and bitcoin declined.
The Nasdaq’s losses left it more than 10 per cent below its October peak. Despite Thursday’s fall, the S&P 500, Dow and Nasdaq remained higher than at the beginning of the year, illustrating the difference between the severe daily reversal and their performance over 2026.
