After the US midterm elections, Wall Street experienced severe turmoil. In the face of a significant drop in U.S. stock prices, President Donald Trump attributed the blame to the Democrats, emphasizing that "it is not the Republicans' fault."
On November 5th, local time, Trump posted on his social media platform “Truth Social”: “Due to the election results, the stock market has experienced one of the worst trading days in history. It’s really sad to see this! We have put so much effort into pushing the stock market to unprecedented heights, but now it has turned out like this. Your 401(k) retirement savings accounts have also been diminished as a result.”
Trump then turned his attention to the Democrats: “Remember, this wasn’t caused by the Republicans, but by those ‘dumb Democrats’.”
However, he still tried to calm investors, saying: “Don’t be afraid. In any case, we will become stronger than ever before. Let America be great again!”
Trump's remarks came during a period of violent selling in the U.S. stock market.
On November 5th, all three major stock indices in the United States tumbled. The Dow Jones Industrial Average fell by 1833 points, a decrease of approximately 3.4%; the S&P 500 Index fell by 4.4%; and the Nasdaq Composite Index, which primarily includes technology stocks, fell by 5.5%.
According to US media reports, this is the biggest single-day drop for the S&P 500 index since April 2025. At that time, Trump announced so-called ‘Liberation Day’ tariff measures, which caused a dramatic market shock.
It is worth noting that just one day before, on November 4th, the U.S. stock market experienced a significant rebound after the Democrats won the midterm elections. On that day, the Dow Jones Industrial Index rose by about 1569 points, a increase of 3%; the S&P 500 Index rose by 1.6%, and the Nasdaq Index rose by 1.4%.
However, this upward trend only lasted for one day. As investors re-evaluated the potential policy changes that a Democratic-controlled Congress could bring about, especially regarding the regulation of the artificial intelligence industry, U.S. stocks fell significantly on November 5th.
This round of sell-offs is mainly driven by stocks related to technology and artificial intelligence. There are concerns that a significant victory for the Democratic Party in the mid-term elections could change the policy environment for the construction of data centers and the artificial intelligence industry in the United States.
Meanwhile, chip companies and data center-related enterprises are also facing significant selling pressure, further dragging down the main stock indexes.
On November 3rd, the United States held mid-term elections, during which the Democratic Party regained control of both the House of Representatives and the Senate. The Republican Party lost its previous full control over Washington.
The election results mean that the legislative agenda of the Trump administration in the next two years may face more constraints. The prospects for policies related to taxation, trade, government spending, and industry regulation also become more uncertain.
However, although Trump attributed the plummeting stock market directly to the Democratic victory, market analysts indicate that the decline in U.S. stocks on that day was influenced by multiple factors, including the selling off of tech stocks, the prospects of artificial intelligence investment, and changes in policy expectations.
