U.S. President Donald Trump blamed the midterm election results for a $3 trillion U.S. stock market loss on November 5, according to a November 8 post shared by The Kobeissi Letter. The comments followed a sharp sell-off in U.S. stocks and cryptocurrencies that erased the previous session’s gains.
Trump Criticizes Election Outcome
In the November 8 post, Trump described the election outcome as a “giant step back in history.” He linked the market decline to Democratic victories, though concerns over artificial intelligence investments also contributed to the selling.
Trump’s remarks followed his November 5 Truth Social statement, where he criticized the market’s reaction to the elections. He argued that Democratic victories had reversed progress made during his administration and affected Americans’ retirement savings.
“The Stock Market suffered one of the Worst Days in History based on the results of the Election,” Trump wrote. He also blamed Democrats for the decline while maintaining that the market could recover.
However, the sell-off followed a rally on November 4, when investors initially welcomed the election results. The S&P 500 gained 1.58%, while the Dow Jones Industrial Average advanced approximately 3% during that session.
Market Reversal and Sector Losses
The reversal came as investors assessed how the new congressional balance could affect corporate spending and technology regulations. Democrats secured control of Congress, while several gubernatorial victories raised questions about future data center approvals.
Some newly elected governors have proposed restrictions on large AI projects, particularly those requiring substantial electricity supplies. The proposals have raised concerns over planned data center expansion across several states. However, proposed restrictions have not automatically become law, and governors face different approval requirements across states.
The S&P 500 lost approximately $3 trillion in market value during Thursday’s session, while major technology companies recorded heavy losses. The Nasdaq Composite dropped 5.52% on November 5, closing at 24,315 after its steepest daily decline in 19 months. The S&P 500 fell 4.36% to 7,353.73, and the Dow declined 3.44% to 51,523.06.
Technology companies recorded some of the largest losses, with Nvidia shares falling approximately 9.3% during Thursday’s trading. Advanced Micro Devices and Micron Technology each dropped around 17%, while the Philadelphia Semiconductor Index declined approximately 12%.
The decline reflected renewed concerns about AI infrastructure spending and the financial returns expected from major technology investments. Investors also examined the funding required to construct data centers and secure electricity supplies.
The technology stock sell-off reached companies involved in chips, cloud computing, and data center development. However, several semiconductor stocks recovered during Friday’s trading as buyers returned after the previous session’s declines.
The broader market downturn extended into other sectors, with all 11 S&P 500 sectors closing lower on Thursday. The losses followed growing concern about future regulation and the pace of corporate investment.
Meanwhile, the incoming Democratic majority is preparing greater congressional oversight of Trump’s business interests and technology companies. The election results have prompted plans for investigations into Trump-linked crypto businesses, although the new Congress will not convene until January.
