Wall Street bleeds: Trump blames Democrats for $1-trillion stock rout post midterm shake up

US President Donald Trump placed the blame squarely on Democrats for a massive Wall Street sell-off on November 5 that wiped out $1 trillion in investor wealth following the U.S. midterm election results. Taking to Truth Social, Trump linked the market plunge directly to the political shift.

"The Stock Market suffered one of the Worst Days in History based on the results of the Election," Trump wrote. "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! President DONALD J. TRUMP".

Markets suffer broad sell-off

The sharp decline surrendered Wednesday’s postelection gains and pushed several benchmark indices into steep territory:

• Nasdaq Composite: Plunged over 5% (sliding 5.5%), marking its worst single-day performance since April 4, 2025 (when it fell 5.82%) and finishing in correction territory.  
• Dow Jones Industrial Average: Retreated more than 1,800 points (over 3%), securing its worst day since dropping 2,200 points (5.5%) on April 4, 2025. 
• S&P 500: Pulled back more than 4%, logging its worst single-day performance since a 5.97% drop on April 4, 2025. 
• Russell 2000: The small-cap index also ended the session in correction territory. 

Tech sector & AI hit hardest 

The rout was heavily driven by mounting fears over a slowdown in the artificial intelligence buildout, slamming chipmakers and AI infrastructure firms.

The 'Magnificent Seven' — comprising Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta Platforms and Tesla — erased over $1 trillion in aggregate market cap.

• Nvidia: Led the downturn with a single-day market cap loss of nearly $450 billion (more than $440 billion). Dropping over 9%, Nvidia turned negative on the year, down 2.6% year-to-date. 
• Qualcomm: Fell more than 9% following a disappointing earnings forecast for the current quarter. 
• Neoclouds: Companies like CoreWeave tumbled for a second consecutive day. 

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Rising interest rates, heavy capital requirements, and fears of low revenue relative to debt load have created a challenging backdrop for companies tied to AI infrastructure.

Dems target data centers  

Wall Street's anxieties were heightened as newly elected and returning Democrats signaled immediate legislative plans targeting the AI buildout — specifically data center expansion.

• National moratorium calls: Sen. Bernie Sanders (I-Vt.) pointed to local referendum victories restricting data centers, calling for a "National data center moratorium now" on X and warning against "Big Tech oligarchs wrecking the environment, gutting jobs and threatening humanity’s future." 
• House priorities: Rep. Yassamin Ansari (D-Ariz.) stated that pausing AI development must be a Day 1 priority for the House's Democratic majority, a stance echoed by Congressional Progressive Caucus Chair Rep. Greg Casar (D-Texas). 

State & Senate Victories

• South Carolina: Democrat Annie Andrews, who flipped a Senate seat, ran on opposition to data center influence, stating in her victory speech that community decisions belong to residents rather than "billionaires or data center companies in Washington D.C." 
• Ohio: Returning Sen. Sherrod Brown told supporters in his victory speech, "I do not work for data centers." 
• Pennsylvania: Gov. Josh Shapiro highlighted his August executive order slowing data center development, reiterating that local communities must have the final say over Big Tech. 
• Texas: Democrat Gina Hinojosa ousted Republican Gov. Greg Abbott in a state that hosts 27% of planned US data center capacity according to Wells Fargo. Hinojosa previously pledged a ban on data center approvals until legislative protections are passed, calling data centers part of a broader fight for Texas's future.

The US market rout spread to Asian counterparts on November 6 trade with Korea’s Kospi hitting its circuit breaker, while indices across Japan and Taiwan were hit hard. Kospi fell as much as 8.8% today, triggering circuit breaker, with Samsung and SK Hynix falling over 6% each. Japan's Nikkei declined 5.7%.