Trump blames Democrats for market losses after US midterm elections; says ‘we’ll be bigger, stronger than ever before’

US President Donald Trump blamed Democrats for losses in Americans' 401(k) retirement portfolios following their sweeping midterm election victories. His remarks came amid a deepening selloff in artificial intelligence and technology stocks, raising concerns over market volatility.

Days after Democrats secured sweeping victories in the US midterm elections, dealing major setbacks to President Donald Trump and his Republican Party, Trump on Thursday (local time) blamed Democrats for losses in Americans' 401(k) portfolios amid a deepening selloff in artificial intelligence (AI) and technology-related stocks.

In a social media post, Trump blamed Democrats for the market downturn, writing, “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. Do not fear; however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN!”

Quick answers to key questions

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QUESTIONS

Trump blamed Democrats and the election results for the market downturn, saying Americans’ 401(k) balances had fallen. This was his claim about the selloff.

Investors worried that Democratic gains could lead to tighter rules or restrictions on AI infrastructure and data-center development. Concerns about high AI valuations and whether investments would generate enough profits also weighed on stocks.

The Nasdaq 100 fell more than 6% on Thursday, while the S&P 500 lost 4.4%, according to the related report. Chip stocks and other AI-linked shares were among the hardest hit.

The reports describe the election outcome as one concern for investors, particularly over possible AI and data-center policy changes. Fears about AI valuations, investment returns and company outlooks also contributed to the selling.

The related articles caution against making hasty investment decisions based on headlines or political outcomes. They recommend following portfolio rules and rebalancing plans rather than reacting impulsively.

This story will be updated with additional details.

About the Author

Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.