President Donald Trump attributed a decline in the stock market on Thursday, Nov. 5, 2026, to the results of the midterm elections. In a post on Truth Social, the president stated the market experienced "one of the Worst Days in History" due to Democratic victories, leading to a decrease in the value of retirement accounts.
The market reaction followed Tuesday’s midterm elections, in which Democrats won several House, Senate, and gubernatorial races previously held by Republicans. This shift has led to market speculation regarding future policy changes concerning the technology sector and artificial intelligence (AI).
On Wednesday, Nov. 4, the Nasdaq 100 experienced its worst session since March 2020, falling 6.4 percent and losing approximately $2.3 trillion in market value. The decline continued on Thursday, with the Nasdaq Composite dropping 5.52 percent, the S&P 500 falling 4.36 percent, and the Dow Jones Industrial Average decreasing by 1,833.06 points. Following the election results, shares in Tesla fell by 10 percent and SpaceX fell by 9 percent.
The shift in Congressional control is expected to change the federal approach to AI regulation when the new term begins in January. President Trump previously revoked an executive order that required AI developers to share safety test results with the government. Conversely, Sen. Bernie Sanders (I-VT) called for a national moratorium on data centers on Wednesday, citing concerns over the environment, jobs, and the future of humanity.
Investors are monitoring whether the new majority will introduce measures to curb data center expansion or reinstate safety testing requirements for AI systems. Specific dates for hearings or votes on these matters have not been reported.