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Trump blames Democrats for $3 trillion US stock market loss after 2026 midterms
Donald Trump claimed that the US stock market lost nearly $3 trillion after Democrats’ midterm victories, arguing investors reacted negatively.
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US President Donald Trump has claimed that the American stock market lost $3 trillion in value following the November 3 midterm elections, blaming the decline on investors' reaction to Democratic victories, while asserting that markets have since recovered.
In a post on his Truth Social platform, Trump questioned whether investors had reacted negatively to the election results, in which Democrats secured control of both chambers of Congress.
“Has anyone noticed that immediately after the Election the Stock Market lost 3 Trillion Dollars in Value? In other words, Investors throughout the World hated seeing what took place on Election Day,” Trump wrote.
“But have no fear, the Market has since gone up, and America will soon be GREATER THAN EVER BEFORE!” he added.
US stocks suffer sharp sell-off after election
US markets experienced significant volatility in the days following the elections. On November 4, the Dow Jones Industrial Average rose 3%, while the S&P 500 gained 1.6%, as investors initially responded to the election results.
However, the gains were reversed on November 5, when the Dow fell 3.4%, the S&P 500 dropped 4.4% and the Nasdaq Composite declined 5.5%, according to a Bloomberg report.
The sell-off wiped out nearly $3 trillion in market value across major US stocks. The Nasdaq 100 alone lost $2.3 trillion, according to Bloomberg.
Technology stocks were among the biggest losers, with investors concerned that newly elected Democrats could push for tighter restrictions on artificial intelligence development and data centre construction. Weak forecasts from chipmakers Qualcomm and Arm also added to the pressure on technology shares.
Trump says markets have recovered
Trump's claim comes as Wall Street has staged a rebound following the post-election sell-off.
On November 9, the S&P 500 gained 2.3%, the Dow Jones Industrial Average rose 2.2% and the Nasdaq Composite advanced 2.7%, recording the market's strongest session since April, according to the Associated Press.
However, the recovery did not mean all losses had been erased. By the November 9 closing bell, the Dow was about 1.2% higher than its Election Day level, while the S&P 500 remained slightly lower, according to FactCheck.org's analysis of Trump's post-election market claims.
Trump has repeatedly attributed the market decline to Democratic victories, although market analysts have also pointed to concerns over AI investment, technology company earnings and the cost of building data centres.
