Trump blames Democrats for stock market plunge after Wall Street's worst drop since second quarter of 2025
The president warned that the market decline is affecting retirement accounts, while investors fear that the new Democratic-controlled Congress will slow the expansion of artificial intelligence data centers.
Donald Trump
President Donald Trump blamed the Democrats for the sharp plunge on Wall Street Thursday, after the Nasdaq posted its worst session since April 2025 and the market wiped out trillions of dollars in value amid fears that the new Democratic Congress would curb the expansion of artificial intelligence data centers.
Democrats have pushed measures aimed at restricting the development of data centers and subject artificial intelligence systems to new controls, arguing that they are protecting consumers from potential increases in electricity rates and requiring independent testing of A.I. systems.
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Trump blames Democrats
In two posts shared on Truth Social, the president directly linked the market crash to the Democratic victory. In the most recent one he wrote that "the Stock Market crashed today because the Dumocrats had a big Tuesday — So sad to see, you only have yourselves to blame!"
Minutes earlier, in a longer post, Trump directly blamed the election results for what he described as one of the worst days in history for the stock market. In that post, he stated that "the Stock Market suffered one of the Worst Days in History based on the results of the Election" and added that, as a result, Americans' 401(k) retirement accounts have also "dropped."
"Remember, it wasn’t Republicans, it was Dumocrats," he wrote, before assuring that the country would once again be "BIGGER AND STRONGER THAN EVER BEFORE."
The president maintains a favorable stance toward data centers for artificial intelligence and has rejected proposals for greater restrictions on the sector, advocating instead for a light regulatory framework.
Worst drop in 19 months
The Nasdaq Composite, which is heavily weighted toward technology, fell 5.5% on Thursday and entered correction territory, more than 10% below its recent high. It was its biggest daily drop since April 2025.
The crash wiped out approximately $2.5 trillion in market value from the Nasdaq and dragged down the S&P 500 and the Dow Jones, which also posted their worst sessions since April 2025.
"Thursday's session was like having the rug pulled out from under you after they'd rolled out the welcome mat on Wednesday," he said Patrick O'Hare, an analyst at Briefing.com, in remarks reported by AFP.
Asia feels ripple effect
The impact of the U.S. market crash was immediately felt in Asia. Tokyo's Nikkei 225 fell 5.1% at Friday's opening, while the Seoul's Kospi plunged 8.5%, triggering a “circuit breaker” that suspended trading for 20 minutes.
Shares of memory chip manufacturers in South Korea also took a hit. Samsung Electronics fell nearly 10%, and SK hynix more than 11%, while in Japan Tokyo Electron fell about 9% and Kioxia 13%.
Market tries to recover
Among individual stocks, semiconductor shares rebounded after Thursday's decline. Nvidia rose 6.1% and Micron 6.5%, while Airbnb soared after raising its full-year revenue growth forecast.
The question now is whether Wall Street will manage to stabilize or whether fears of increased Democratic regulation will continue to weigh on tech and artificial intelligence stocks in the coming trading sessions.
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