President Donald Trump blamed Democrats for a stock market rout that erased about $3 trillion from the S&P 500 and handed the Nasdaq 100 its worst day since the 2020 pandemic.
Trump Says 401(k)s Have Dropped
In a post on Truth Social, Trump said the stock market “suffered one of the Worst Days in History based on the results of the Election,” a day after Democrats secured control of Congress in the midterm elections.
“Such a sad thing to watch!” he said. “Your 401(k)s have, therefore, dropped. Remember, it wasn’t Republicans, it was Dumocrats.”
“Do not fear, however,” Trump said, adding that “we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE.”
Chip Stocks Lead the Slide
The State Street Technology Select Sector SPDR ETF (NYSE:XLK) closed 8% lower on Thursday, while the VanEck Semiconductor ETF (NASDAQ:SMH) sank 11.21%.
AI bellwether Nvidia Corp. (NASDAQ:NVDA) fell nearly 9.26% in regular trading, while Advanced Micro Devices Inc. (NASDAQ:AMD) slumped 17.26%, and Micron Technology Inc. (NASDAQ:MU) fell 17.46%.
Elon Musk‘s Tesla Inc. (NASDAQ:TSLA) and Space Exploration Technologies Corp. (NASDAQ:SPCX) fell 10.77% and 9.05%, respectively.
The stocks bounced back in overnight hours, with Nvidia up 1.36%, AMD up 3.57%, and Micron up 3.42%. Tesla gained 0.78%, while SpaceX was up 2.24%.
The drop came a day after Wall Street celebrated a historic post-election rally.
Data Center Bans Pile Up as Democrats Push for a Halt
Democrats’ midterm win raised fears of tougher data center restrictions, and Sen. Bernie Sanders (I-Vt.) used it Wednesday to renew his call for a national moratorium.
Citi Research data shared by The Information shows U.S. data center bans and pauses rose from near zero through mid-2025 to more than 500 by October.
Price Action: The State Street SPDR S&P 500 ETF Trust (NYSE:SPY) fell 4.41% to close at $733 on Thursday and rose 0.25% to $734.81 in extended trading. The Invesco QQQ Trust (NASDAQ:QQQ) fell 6.49% to $647.05 and rose 0.83% to $652.43 in after-hours trading.
Benzinga Edge rankings indicate the State Street ETF has a Momentum score in the 65th percentile and a negative short-term price trend. Over the medium and long term, the ETF has a positive trend.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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