After Dems’ Midterm Victories, Trump Blames Stock Market Nose Dive—but Is He Wrong?

Trump links losses to election

In a Truth Social post after Thursday’s closing bell, Trump described the market’s performance as one of its worst days in history and tied it to election results. He said the decline had also reduced 401(k) balances.

The article says Trump’s claim that the election affected Wall Street was accurate, despite noting that his online comments are often exaggerated or include falsehoods. Tuesday’s Democratic gains in reliably Republican states came as investors weighed possible policy changes.

Technology shares fall sharply

The Nasdaq 100, which includes companies such as Nvidia, Apple and Alphabet, recorded its steepest session loss since March 2020 on Wednesday, during the early COVID-19 pandemic. Shares continued falling Thursday.

CNBC reported that the Nasdaq Composite declined 5.52 percent on Thursday. The S&P 500 fell 4.36 percent, while the Dow Jones Industrial Average lost 1,833.06 points.

Investors focus on AI rules

Investors are concerned that the Democrat-controlled Congress due to convene in January could tighten oversight of artificial intelligence. The article also links those worries to potential limits on the expansion of data centers used to power AI systems.

On his first day in office, Trump revoked a 2023 executive order signed by Joe Biden. It required developers of AI systems posing risks to national security, the economy, public health or safety to provide safety-test results to the federal government.

Sanders urges data center pause

After Republicans lost major House, Senate and governor races, investors worried Democrats could curb data center growth. Vermont independent Sen. Bernie Sanders, who works with Democrats, called Wednesday for a national moratorium on data centers. In September, Trump argued that the United States should maintain its lead over China in AI, saying, “Whoever wins AI, wins.” Sanders wrote on X that Americans did not want technology companies to damage the environment, eliminate jobs or endanger humanity’s future.