Trump Blames Democrats as Stock Market Selloff Deepens
President Donald Trump blamed Democrats for losses in Americans’ 401(k) portfolios as technology and AI stocks fell after Republican losses in the midterm…
President Donald Trump blamed Democrats for losses in Americans’ 401(k) portfolios on Thursday evening as technology and artificial intelligence stocks fell after Republican losses in Tuesday’s midterm elections. The Nasdaq 100 sank 6.4% in its worst session since March 2020, wiping out $2.3 trillion in value.
The selloff sharpened concerns for investors and retirement savers as Democrats took control of both chambers of Congress and markets reacted to the possibility of tighter oversight of the AI industry, including data center construction. Chip giants and other technology stocks recorded heavy losses.
Trump said the falling portfolios followed gains built during his administration. “Your 401(k)s have, therefore, dropped. Remember, it wasn't Republicans, it was Dumocrats,” the president wrote on Truth Social, using a derisive nickname for Democrats.
Why did Trump blame Democrats for the market drop?
Trump linked the decline to the Democrats’ election gains. In another Truth Social post, he wrote that the market rout happened because Democrats “had a big Tuesday” and said voters had themselves to blame.
The losses came as investors considered how a Democratic-controlled Congress could approach AI regulation and the rapid construction of data centers. Trump has backed data centers and dismissed proposals to restrict AI, favoring light regulation.
The market’s reaction also puts a policy issue at the center of the political debate: companies building AI infrastructure may face increased scrutiny. That prospect unsettled technology shares, while the heavy losses in the Nasdaq 100 showed how quickly concerns around the sector can affect the value of retirement portfolios tied to stocks.
What happened to the Nasdaq 100?
The index fell 6.4%, erasing $2.3 trillion in market value during its worst session since March 2020. The decline deepened on Thursday as worries about congressional oversight compounded the pressure on technology and AI-related shares.
Trump has often cited stock market gains as evidence of economic success, highlighting them in speeches and social media posts. The sharp decline now gives his political opponents an opening to question that measure, even as he assigns responsibility for the losses to Democrats.
On Tuesday night, Trump said he would accept the midterm results after weeks of casting doubt on their legitimacy if Republicans lost. He also said he would have won in a landslide had he been on the ballot, while congratulating Democrats for doing a “good job.”
On Wednesday, Trump blamed high fuel prices stoked by his war in Iran for the Republican Party’s midterm wipeout, while maintaining that the conflict was justified. His comments tied the election setback to household costs, while his remarks on Thursday focused on falling investment portfolios.
The Nasdaq 100’s 6.4% drop wiped out $2.3 trillion in value.
