U.S. stocks suffered one of their sharpest selloffs in more than a year on Thursday, and President Trump blamed Democrats’ midterm victories for the hit to Americans’ retirement accounts.
The Dow Jones Industrial Average fell 1,833 points, or 3.44%, the Nasdaq Composite dropped 5.52%, and the S&P 500 declined 4.36%, Fox Business reported. The Nasdaq closed more than 10% below its October record, entering correction territory. The New York Post reported that S&P 500 firms shed $2.9 trillion in market value and Nasdaq companies lost $2.5 trillion — about $5.4 trillion combined — both described as single-day records.
Trump’s Truth Social post
The White House amplified Trump’s Truth Social message on X. “The Stock Market suffered one of the Worst Days in History based on the results of the Election,” he wrote. “Such a sad thing to watch! It took so much work to get us to a level that no one has ever seen before, and then this. Your 401(k)s have, therefore, dropped.”
“Remember, it wasn’t Republicans, it was Dumocrats,” he continued, according to Fox Business. “Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE.”
Ken Mahoney, CEO of Mahoney Asset Management, told the Post that savers might have seen a roughly 4% drop across their 401(k)s, which he called a severe single-day fall.
The Stock Market suffered one of the Worst Days in History based on the results of the Election. Such a sad thing to watch! It took so much work to get us to a level that no one has ever seen before, and then this. Your 401(k)s have, therefore, dropped. Remember, it wasn’t Republicans, it was Dumocrats. Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN! President DONALD J. TRUMP ( TS: Nov 5 2026, 6:18 PM ET )
— Commentary Donald J. Trump Truth Social Posts On X (@TrumpTruthOnX) November 5, 2026
AI fears and a one-day reversal
The selloff came a day after stocks had rallied on the election results, wiping out Wednesday’s gains, Fox Business and the Post reported. eToro market analyst Jakub Rochlitz said, “The obvious catalyst for the sharp selloff is that markets are pricing in the midterm results.”
Technology and artificial-intelligence names led the decline as investors weighed Democratic control of Congress and tighter AI oversight. Nvidia fell more than 9%, shedding about $374 billion in market value, the Post reported. The Philadelphia Semiconductor Index plunged more than 12%, Fox Business said. The so-called Magnificent 7 stocks alone lost about $1.04 trillion Thursday, according to the Post.
Investors also pointed to local backlash against data centers. The Post cited Ballotpedia data that voters decided against building more centers in at least 47 of 50 ballot measures Tuesday. Analyst Dan Ives wrote that growth into 2028 will moderate as the data-center buildout slows “given the political map especially in the state of Texas.”
David Bahnsen of The Bahnsen Group told the Post the correction was “driven by valuations that became completely disconnected from reality” after tech stocks rose on “euphoria and hype” rather than fundamentals.
The bottom line
Trump is right that election results moved the market, and right to warn people watching their 401(k)s. A party that just took Congress on cost-of-living promises now owns the fear that it will regulate growth industries into a stall. Voters who wanted cheaper groceries did not ask Wall Street for a $5 trillion haircut, but they did choose the majorities now in the driver’s seat.
Republicans should not pretend every selloff is permanent doom. Valuations in AI names were stretched, as Bahnsen said. The answer is not panic selling. It is a clear defense of tax policy, energy abundance, and an AI sector that builds in America without crushing ratepayers.
Democrats wanted the power. They have it. If they spend the next two years choking data centers and chasing company executives, Thursday will look like a preview, not a one-off. We should hold them to the bill for every point they knock off working Americans’ retirement accounts.