'Such a sad thing to watch!': Trump blames Democrats for sharp US stock market decline after midterm election victories

US President Donald Trump has blamed the Democratic Party's sweeping victories in the 2026 midterm elections for a sharp downturn on Wall Street, urging investors to remain calm and predicting that the markets would soon become "bigger and stronger than ever before."

In a post on Truth Social on Thursday (local time), Trump criticised the market's steep losses, describing the decline as one of the worst in history. He also claimed that the sell-off had negatively affected Americans' retirement savings, including their 401(k) accounts.

"The Stock Market suffered one of the Worst Days in History based on the results of the Election. 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 wrote.


Seeking to reassure investors amid the turmoil, the US President insisted that the downturn would not derail the market's longer-term prospects.

"Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE."

The remarks came as US equities recorded substantial losses during Thursday's trading session. According to the New York Post, the Nasdaq Composite dropped 5.52 per cent to close at 24,315.00, pushing the index into correction territory. The S&P 500 fell 4.36 per cent to finish at 7,353.73, while the Dow Jones Industrial Average shed 1,833 points, or 3.44 per cent, ending the session at 51,523.06.

The sell-off erased gains made during the previous trading session and resulted in significant losses in market capitalisation. S&P 500-listed companies collectively lost approximately USD 2.9 trillion in market value, while Nasdaq-listed firms saw around USD 2.5 trillion wiped from their valuations.

Investor anxiety over the possibility of Democratic lawmakers introducing tighter restrictions on artificial intelligence development and data-centre projects also weighed on technology stocks, the New York Post reported. Market participants reassessed the potential implications of the election results for the technology sector and its future growth prospects.

Thursday's downturn marked a sharp reversal from Wednesday's rally, when US markets surged following Democratic victories in the November 3 midterm elections. The Dow Jones Industrial Average had climbed by more than 1,000 points, while the Nasdaq and S&P 500 also ended the session higher.

The market volatility comes against the backdrop of a significant political shift in Washington, with US networks projecting that Democrats will regain control of both the House of Representatives and the Senate in the 2026 midterm elections.

The expected change in congressional control could have far-reaching implications for Trump's presidency. A Democratic majority in the House would give the opposition party greater scope to launch investigations, conduct hearings and intensify oversight of the administration.

Meanwhile, gaining control of the Senate would strengthen the Democrats' influence over legislative proceedings and presidential nominations, potentially complicating Trump's efforts to advance his policy agenda.

The election outcome, coupled with mounting uncertainty over the future direction of US economic and technology policies, has placed Wall Street under renewed pressure as investors assess the political and financial implications of the changing balance of power in Congress.

With inputs from ANI