US President Donald Trump, in his Truth Social account, blamed the Democratic Party and its victory in the midterm Congressional elections on November 3, 2026, for the sharp drop in the American stock market. According to the head of the White House, the exchanges experienced "one of the worst days in history," and Americans' 401(k) retirement savings have "shrunk accordingly." Trump emphasized that "the Republicans were not to blame, but the Democrats," and urged fellow citizens not to panic, promising that the country's economy "will soon be bigger and stronger than ever before."
Record losses in daily capitalization
According to the MarketWatch portal, on Thursday, November 5, the broad-market S&P 500 index lost about $2.9 trillion in market value, falling by 4.35%. This drop became the largest daily capitalization loss in the history of American trading. Large-scale sell-offs affected primarily the technology and artificial intelligence sectors. The Financial Times estimated that entrepreneur Elon Musk could have lost about $30 billion after the announcement of the preliminary results of the midterms, which was linked to the investors' reaction to the shift in control of Congress.
Election results of November 3: Democrats win both houses
On November 3, 2026, the US held Congressional by-elections, as a result of which the Democratic Party gained control over both the Senate and the House of Representatives. This means that for the remainder of Trump's second presidential term, the legislative branch of government will be fully under the control of the opposition party. Earlier, immediately after the announcement of the preliminary results, Trump threatened to veto Democratic initiatives, but later acknowledged the voting results and stated his readiness to cooperate with the new Congress.
White House: "They are headed for failure"
On November 5, the White House press office issued a statement asserting that Democrats would not be able to overturn key achievements of the Trump administration. The document stated that attempts by the legislative branch to rollback current policy are "destined to fail." The statement was viewed by observers as a signal that the White House intends to actively use the President's veto power to block legislative initiatives of the new majority in Congress.
Political context and market reaction
Trump's linking of the market drop to the election results reflects a consistent trend in his public rhetoric, in which economic indicators are viewed as a direct indicator of political effectiveness. Analysts note that the record S&P 500 crash of 4.35% in one day coincided in time with the announcement of the election results and the mass reallocation of portfolios by institutional investors. At the same time, the president himself did not provide specific economic reasons for the correction in his post, limiting himself to political attribution of responsibility. Experts indicate that the decline in the technology and AI sectors was driven by a reassessment of expectations regarding regulatory policy and budget spending, which will now be determined by the Democratic majority in Congress.
