President Donald Trump blamed Democrats for one of the worst days in Wall Street history on Thursday, November 5, 2026, after the stock market suffered a record $5.4 trillion wipeout in a single session. The Dow fell 1,833 points, the Nasdaq plunged 5.5 percent, and the S&P 500 dropped 4.4 percent, erasing Wednesday's post-midterm rally in hours. After the closing bell, Trump said on Truth Social that the market had suffered "one of the Worst Days in History based on the results of the Election", and warned voters: "Your 401(k)s have, therefore, dropped."

The sell-off, the worst for American stocks since April 2025, was driven by fears that the Democrats' sweep of both chambers of Congress in Tuesday's midterms will bring a clampdown on artificial intelligence spending and data centre construction. Hundreds of newly elected Democrats campaigned on pledges to restrict data centre projects, as traders repriced technology stocks.

Key Points

• President Donald Trump blamed Democrats for Thursday's stock market crash, saying on Truth Social that the market suffered "one of the Worst Days in History based on the results of the Election."
• The Dow fell 1,833 points (3.44 percent) to 51,522.58, the Nasdaq dropped 5.52 percent to 24,314.997, and the S&P 500 fell 4.36 percent to 7,353.80.
• Companies in the S&P 500 and Nasdaq shed a combined $5.4 trillion in market value in a single day, a record, wiping out Wednesday's post-midterm rally.
• Analysts attributed the sell-off to fears that the Democrats' sweep of both chambers of Congress will bring a clampdown on AI spending and data centre projects.
• The Nasdaq's fall was its worst session in percentage terms since April 2025, taking the index into correction territory.

What Happened

The selling began before the opening bell and never let up. The Dow gave back Wednesday's 1,569-point surge and more. At the close, the Dow finished down 1,833 points at 51,522.58, the Nasdaq dropped 1,421.5 points to 24,314.997, and the S&P 500 lost 334.82 points to 7,353.80.

The rout was concentrated in the artificial intelligence trade that has dominated markets for two years. The Philadelphia Semiconductor Index fell 12 percent, its second-biggest drop on record. Nvidia fell 9 percent, while Advanced Micro Devices, Micron Technology and Marvell each dropped about 17 percent, and SanDisk plunged 22 percent. Bitcoin fell 6 percent to about $75,000. Oil rose 3 to 4 percent and gold gained about 1 percent, while yields on short-term government bonds fell 12 basis points.

Background: A Week of Wild Swings

Thursday's crash capped one of the most volatile weeks in Wall Street history, and it followed directly from Tuesday's midterm elections. Democrats swept both chambers of Congress on November 3, taking control of the House and the Senate. At first, markets cheered: on Wednesday, the Dow jumped 1,569 points in its biggest post-election rally in years. The celebration lasted exactly one session.

By Thursday morning, traders focused on what Democratic control could mean for the AI buildout: new limits on data centres and slower approvals for the infrastructure behind the boom. Hundreds of Democrats who won office on Tuesday campaigned on pledges to restrict data centre projects, responding to local anger over soaring electricity prices and strained water supplies. The Nasdaq already stood about 11 percent below its October 6 record close of 27,599.89.

Trump Blames Democrats for the Stock Market Crash

Trump's response came within hours of the closing bell. In his first Truth Social post, he wrote: "The Stock Market suffered one of the Worst Days in History based on the results of the Election. Such a sad thing to watch!" He warned savers directly: "Your 401(k)s have, therefore, dropped. Remember, it wasn't Republicans, it was Dumocrats." In a second post, he added: "The Stock Market crashed today because the Dumocrats had a big Tuesday - So sad to see, you only have yourselves to blame!" He insisted the damage would be temporary, writing that "we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE."

The blame game is a familiar feature of Trump's relationship with the stock market. This time, the target is the party that has just taken control of Congress. The sell-off was driven by a specific policy fear, the prospect of curbs on AI infrastructure, rather than by any action the new Congress has yet taken.

Reactions and Quotes

Trump's posts were the loudest political reaction to the crash, but the market's own verdict was delivered in the numbers. Analysts attributed the sell-off to fears that the Democrats' sweep of both chambers will bring a clampdown on AI spending and data centres. For savers, a 4 to 5 percent fall in one day shows up quickly in retirement accounts.

Why It Matters

The crash matters for three reasons. First, it breaks the market's long calm: a 5.5 percent single-day fall, the worst since April 2025, is a reminder that the rally rests on assumptions about future spending that can change overnight when politics intervenes. Second, it puts the AI infrastructure boom under a political spotlight, as the midterm results suggest a public debate over data centres is now coming. Third, it sets up a two-year political fight over who owns the market's losses.

What Happens Next

All eyes now turn to Friday's trading, when investors will decide whether Thursday was a one-day panic or the start of a deeper correction. A rebound would suggest the market has absorbed the political shock; a second day of heavy selling would confirm the AI trade is unwinding. The longer question is what the new Congress does about data centres and AI spending when it takes office in January. Campaign pledges are one thing; legislation is another.

Related coverage: Nasdaq closes down 5.5% in worst day since April as $2 trillion wiped off and Nasdaq crashes 5.3% as chip stocks plunge, wiping out the post-midterm rally.

Frequently Asked Questions

How much did the stock market fall on Thursday, November 5, 2026?
The Dow fell 1,833 points to 51,522.58, the Nasdaq dropped 5.52 percent to 24,314.997, and the S&P 500 fell 4.36 percent to 7,353.80. S&P 500 and Nasdaq companies shed a combined $5.4 trillion, a one-day record.

What did Trump say about the stock market crash?
On Truth Social, Trump wrote that "The Stock Market suffered one of the Worst Days in History based on the results of the Election" and said "Your 401(k)s have, therefore, dropped." He added: "Remember, it wasn't Republicans, it was Dumocrats."

Why did the market crash after the midterm elections?
Analysts attributed the sell-off to fears that the Democrats' sweep of both chambers will bring a clampdown on AI spending and data centre projects. Hundreds of newly elected Democrats pledged to restrict data centre construction.

Was this the Nasdaq's worst day of 2026?
Yes, in percentage terms. The Nasdaq's 5.52 percent fall was its worst single session since April 2025, and it took the index into correction territory.

What happens next for the stock market?
Investors will watch Friday's trading for a rebound or a deeper correction, and the new majorities' data-centre plans when Congress convenes in January.