Trump Says Voters Only Have Themselves to Blame For The Stock Market Rout

President Donald Trump has blamed Americans who voted for Democrats in Tuesday's midterm elections for the stock market's steep plunge after Wall Street suffered its worst session in more than a year.

"The Stock Market crashed today because the Dumocrats had a big Tuesday — So sad to see, you only have yourselves to blame!" Trump wrote on Truth Social Thursday evening.

The tech-heavy Nasdaq index plunged 5.52%, while the S&P 500 dropped 4.36% and the Dow Jones Industrial Average lost 3.44%, or more than 1,800 points. The sell-off wiped approximately $3 trillion from the market value of S&P 500 companies, with technology stocks taking some of the heaviest losses.

Trump also accused Democrats of damaging Americans' retirement savings. "Your 401(k)s have, therefore, dropped. Remember, it wasn't Republicans, it was Dumocrats," the president said in another post, using a derogatory name for his political opponents.

His remarks came just a day after he celebrated a sharp rally on Wall Street, when stocks surged despite the Democrats' sweeping election victory. Trump had credited his administration for the market's strength on Wednesday, but the gains were erased the following day as investors began selling off technology and artificial intelligence stocks.

The sudden reversal was particularly painful for companies that have benefited from enormous spending on AI infrastructure.

Nvidia, whose chips power many of the world's advanced AI systems, fell more than 9% on Thursday. Advanced Micro Devices plunged around 17%, while Broadcom dropped about 10%. The Philadelphia Semiconductor Index sank more than 12%, its second-largest one-day percentage decline on record.

Data center companies were hit hard too. IREN and Applied Digital lost more than 14% each, while CoreWeave fell almost 10%, according to Reuters.

Investors are increasingly worried that the Democratic takeover of Congress could slow the rapid expansion of AI data centers, a sector that has helped drive the stock market's gains this year.

The concerns are not confined to Washington. Voters across the country used Tuesday's elections to oppose data center developments in their communities, citing worries about electricity costs, water consumption and the pressure large facilities could place on local infrastructure.

Of the 41 local data center-related measures on Tuesday's ballots, 40 produced results favoring restrictions or opposing proposals intended to facilitate development, according to Ballotpedia.

Some communities approved outright bans, while others supported temporary moratoriums, additional zoning requirements or advisory measures opposing construction.

Wall Street has been watching those developments closely because AI companies need enormous amounts of computing infrastructure to train and operate their models. A slowdown in data center construction could affect demand for chips, electrical equipment, cooling systems and other services that support the industry.

The Nasdaq's decline pushed it into correction territory, meaning it had fallen at least 10% from its recent peak. The index had reached a record high on October 6, barely a month before Thursday's sell-off.

Losses were widespread across the market. All 11 sectors of the S&P 500 finished lower, with technology dropping more than 7%. Financial and industrial stocks also fell, showing that the selling had spread beyond the companies most directly involved in AI.

For Trump, the market decline came at an uncomfortable political moment. The president had spent much of his second term pointing to stock market gains as evidence of his administration's economic success. Thursday's losses also wiped out the gains from Wednesday's post-election rally, when investors had initially welcomed the end of uncertainty surrounding the midterms.

The market reaction was not limited to the United States. Technology stocks in Asian markets also fell sharply on Friday, tracking the losses on Wall Street as investors reassessed the prospects for AI spending.

There were some signs of a possible recovery before the U.S. opening bell Friday. Nasdaq futures were up about 1.2% during the morning, although the rebound followed a session in which the index had lost more than 5%.

For investors, another question is whether restrictions on data center construction will translate into meaningful changes in corporate spending plans. Much of the industry's investment has already been announced, but large projects can take years to complete and often require local planning approvals, electricity connections and other infrastructure.

The extent of Thursday's market reaction was clear in the semiconductor sector. The Philadelphia Semiconductor Index dropped 12.2% in a single session, leaving it roughly 32% below its peak from a month earlier, according to Charles Schwab.