Trump Blames Democrats’ Midterm Victories for US Stock Market Plunge

US President Donald Trump has blamed the sharp decline in the country's stock market on the Democratic Party's strong performance in Tuesday's midterm elections, accusing voters of triggering the market downturn through their electoral choices.

Trump made the remarks in a post on his Truth Social platform on Thursday after major US stock indexes recorded significant losses, reversing gains made in the previous trading session.

“The Stock Market crashed today because the Dumocrats had a big Tuesday, so sad to see, you only have yourselves to blame!” he wrote.

However, market analysts attributed the sell-off largely to concerns that Democratic victories could lead to tighter restrictions on artificial intelligence investments and the construction of data centres.

The technology-focused Nasdaq Composite fell 5.5 per cent, recording its worst trading session since April 2025. The S&P 500 declined 4.4 per cent to 7,353.73 points, while the Dow Jones Industrial Average shed 1,833 points, representing a 3.4 per cent drop.

The Russell 2000 index of smaller companies also fell 4.4 per cent.

Investors reportedly became concerned that newly elected Democratic lawmakers and governors could support measures restricting data centre developments, which have faced opposition from communities over their energy and environmental demands.

Several Democratic candidates had pledged to challenge or restrict such projects during their campaigns.

The midterm elections delivered significant gains for Democrats, who made breakthroughs in several states traditionally dominated by Republicans, including South Carolina, North Carolina, Iowa, Kansas, Ohio, Texas and Maine.

In Maine, former logger Troy Jackson defeated Republican Senator Susan Collins, while Methodist minister Adam Hamilton won a Senate seat in Kansas, becoming the first Democrat elected to represent the state in the upper chamber since 1932.

Democrats also secured victories in Texas, where Gina Hinojosa defeated Republican Governor Greg Abbott, ending decades of Republican control of the state's governorship.

The party made further gains in the House of Representatives, winning districts across Pennsylvania, Kentucky, Arizona, North Carolina, Wisconsin and New Jersey, including constituencies previously carried comfortably by Trump in the 2024 presidential election.

In Georgia, former Atlanta mayor Keisha Lance Bottoms won the governorship, becoming the first Black woman elected to the position in the United States.

Republicans recorded victories in Florida, where Trump-backed Byron Donalds became the state's first Black governor, while Ashley Moody retained her Senate seat.

The market decline came a day after US stocks rallied following the election results, as investors initially anticipated that the political outcome could reduce uncertainty.