President Donald Trump said Thursday night that voters had themselves to blame for the stock market's historic sell-off, two days after Republicans lost the midterm elections in a wave of Democratic victories.
Trump posted on Truth Social: "The Stock Market crashed today because the Dumocrats had a big Tuesday — So sad to see, you only have yourselves to blame!"
Stocks plunged Thursday, with the tech-heavy Nasdaq sinking more than 5 per cent as AI-linked stocks sold off. Investors were skittish about the future of AI development and the data centres that power it, after Tuesday's blue wave ushered in candidates who campaigned on restricting AI.
Thursday's sell-off followed a Wednesday rally as initial election results became apparent; Trump was quick to claim credit at the time for the conditions that led to the market highs. Stock futures were down in pre-market trading late Thursday, and Asian markets were broadly lower, pointing to the potential for another rough session Friday.
Analysis
Why This Matters
- The stock market volatility hits anyone invested in equities, from retirees to active traders.
- Trump’s shift from taking credit for gains to blaming voters could widen his political isolation within his party.
- The Democratic win introduces policy uncertainty for AI development, a sector driving much of the market’s growth.
Background
President Trump’s Republican Party lost the midterm elections on Tuesday, with Democrats gaining seats in historic fashion. The president lashed out at voters who rejected his candidates and message.
What to Watch
- Stock futures: continued declines in pre-market trading suggest another down day Friday.
- AI regulation: the incoming Democratic majority may pursue constraints on AI, affecting data-centre investments.
- Trump’s tone: whether he keeps blaming voters or shifts strategy could shape the 2028 race and party unity.