Trump says US took ‘giant step back in history’ after Democrats’ midterm victory

Former US President Donald Trump has stated that Democrats' success in the recent midterm elections has resulted in a significant loss of $3 trillion in the stock market. In a post on his social media platform Truth Social, Trump expressed his belief that America had "taken a giant step back in History" following the election, despite the market's previous performance. He also assured that his party would "return bigger and stronger than ever before."

Trump's comments about the market decline are not new, as he had previously linked the stock market loss to the Democratic victory. He attributed the loss to voters' awareness of the Democrats' performance and his administration's stance on Iran's nuclear program. On Friday, Trump also mentioned the possibility of feeling more unhappy if the market had gained the same amount as it lost.

Market reactions to the election results varied. Initially, stocks surged following the news of the Democratic sweep. However, this positive sentiment quickly turned to disappointment as the market plummeted by $3 trillion the following day. Technology and artificial intelligence-linked stocks were particularly hard hit, with the Philadelphia Semiconductor Index falling nearly 10% and AMD, Micron, and Nvidia experiencing significant losses.

The decline in stock prices was influenced by concerns over the expansion of data centres, a topic that resonated with some Democratic candidates who advocated for restrictions or pauses in new data centre projects. This political pushback raised concerns among investors regarding permitting delays and potential impacts on AI infrastructure companies.

Despite the setbacks, the article notes that Democrats did not secure an unrestricted legislative agenda since Trump maintains the presidential veto power. The White House officially confirmed that Trump remains the president, emphasizing that the election result has not changed the current administration.