President Donald Trump blamed voters for Thursday's stock market plunge, writing on Truth Social that the market crashed because the "Dumocrats" had a big Tuesday. The tech-heavy Nasdaq index fell more than 5% as AI-linked stocks sold off in the wake of the Democratic midterm sweep.
The market's reaction was unusually delayed after Tuesday's midterms, which Republicans lost in historic fashion. Stocks rallied hard Wednesday as the initial election results became apparent, and Trump was quick to claim credit at the time for the conditions behind those highs, only to see markets reverse Thursday.
Investors are skittish about the future for AI development and the data centers that power it after the blue wave brought in candidates who campaigned on restricting AI. Stock futures were down again in pre-market trading late Thursday, and Asian markets were broadly lower, pointing to the potential for another rough day Friday.
The result has also opened a Republican intraparty battle over the populism the party embraced under Trump. Top Republicans have joined the fight, with the party's decisive disadvantage on the economy giving an opening to some conservatives, including presumed challengers to Vice President JD Vance for the 2028 nomination, to call for a return to pre-Trump Republican orthodoxy, when tariffs and other populist economic policies were generally disfavored by the GOP.
Analysis
Why This Matters
- Trump's post turns the sell-off into a direct confrontation with the voters who just rejected his party, raising the political stakes of any further market falls.
- The plunge was concentrated in AI-linked stocks, suggesting the midterm result and Democratic pledges to restrict AI could weigh on the technology sector's value.
- The Republican argument over populism will shape the party's economic platform and the race for the 2028 nomination.
Background
Tuesday's midterms delivered an overwhelming Democratic victory, ushering in a "blue wave" of candidates who campaigned on restricting AI. The market initially rose Wednesday as results became clear, and Trump took credit for the conditions behind those gains before stocks reversed on Thursday. Under Trump, the Republican Party embraced tariffs and other populist economic policies; the election defeat and the party's disadvantage on economic issues have now emboldened conservatives, including potential 2028 rivals to Vice President JD Vance, to argue for a return to traditional GOP orthodoxy.
Key Perspectives
Donald Trump: says the stock market crashed because the "Dumocrats" had a big Tuesday and voters have only themselves to blame; he earlier claimed credit for the conditions behind Wednesday's market rally.
Investors: are skittish about the future for AI development and the data centers that power it after Democratic candidates who campaigned on restricting AI won.
Some Republicans, including presumed 2028 challengers to JD Vance: want a return to pre-Trump economic orthodoxy, when tariffs and other populist policies were generally disfavored by the GOP.
What to Watch
- Whether Friday brings another down day: stock futures were lower late Thursday and Asian markets were broadly down, pointing to further losses.
- Whether the AI sell-off deepens as markets price in the policy platforms of the newly elected Democratic majority.
- Whether Republican contenders for 2028 press the case against tariffs and populism as the party's internal fight develops.
Checked
12 claims in this story checked against 2 sources: 12 supported.
Show each claim
- SupportedTrump told voters, “you only have yourselves to blame.”Washington Examiner: ““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.”
- SupportedThe Nasdaq fell more than 5%.Axios: “Stocks plunged Thursday, with the tech-heavy Nasdaq sinking more than 5% as AI-linked stocks sold off.”
- SupportedAI-linked stocks sold off as the Nasdaq fell.Axios: “Stocks plunged Thursday, with the tech-heavy Nasdaq sinking more than 5% as AI-linked stocks sold off.”
- SupportedTrump blamed voters for Thursday’s stock-market plunge.Axios: “President Trump said Thursday night that voters had themselves to blame for the stock market's historic sell-off .”
- SupportedTrump wrote that the “Dumocrats” had a big Tuesday.Washington Examiner: ““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.”
- SupportedRepublicans lost the midterms in historic fashion, in what the story calls a Democratic sweep.Axios: “Two days after Republicans lost the midterm elections in historic fashion, the president is lashing out at the voters who rejected his candidates and message.”
- SupportedThe market’s reaction was delayed: stocks rallied Wednesday as initial election results became apparent, then plunged Thursday.Axios: “Thursday's plunge was an unusually delayed reaction — the market actually had a massive rally Wednesday as the initial election results became apparent.”
- SupportedTrump claimed credit for the conditions behind Wednesday’s market highs.Axios: “Trump was quick to claim credit at the time for the conditions that led to those market highs.”
- SupportedInvestors were skittish about AI’s future after Tuesday’s blue wave brought in candidates who campaigned on restricting AI.Axios: “Investors are skittish about the future for AI development — and the data centers that power the technology — after Tuesday's blue wave ushered in candidates who campaigned on restricting AI.”
- SupportedLate Thursday, stock futures were down again and Asian markets were broadly lower, pointing to the potential for another rough Friday.Axios: “Stock futures were down again in pre-market trading late Thursday, and Asian markets were broadly lower as well, pointing to the potential for another rough day Friday.”
- SupportedThe midterm result opened a Republican intraparty battle over the populism the party embraced under Trump, with top Republicans joining the fight.Washington Examiner: “Top Republicans have joined a battle over the populism that the Republican Party has embraced under President Donald Trump following Democrats’ overwhelming midterm victory.”
- SupportedThe party’s disadvantage on the economy created an opening for conservatives, including presumed challengers to JD Vance for the 2028 nomination, to call for a return to pre-Trump Republican orthodoxy, when tariffs and other populist economic policies were generally disfavored.Washington Examiner: “The party’s decisive disadvantage on the economy has created an opening for some conservatives, including presumed challengers to Vice President JD Vance for the GOP nomination in 2028, to call for a return to pre-Trump Republican orthodoxy, when tariffs and other populist economic policies were generally disfavored by the GOP.”