Market Volatility: Dow drops 1,833 points after midterm wins

The Dow Jones Industrial Average closed down 1,833 points on Thursday, marking one of the steepest declines in the index's history. This drop came just one day after the benchmark had risen by 1,104 points on Wednesday. The swing represented a reversal of more than 2,900 points between the two trading sessions.

President Donald Trump posted on Truth Social late Thursday to assign blame for the market downturn. He wrote that the market crashed because Democrats had a major win on Tuesday, adding, “So sad to see, you only have yourselves to blame!” In a follow-up post, he described the decline as a “sad thing to watch,” noting the effort required to reach previous record highs. He assured followers that the market would soon be “BIGGER AND STRONGER THAN EVER BEFORE.”

The sell-off extended across other major indices. The Nasdaq composite fell by approximately 1,422 points after gaining more than 500 points the previous day. The S&P 500 also reversed its gains, dropping roughly 335 points after rising more than 120 points on Wednesday.

The volatility followed Tuesday’s midterm elections, in which Democrats secured control of both the House and the Senate. Their victories included wins in battleground states such as Texas, Iowa, Ohio, Maine, Michigan, and Kansas. Democratic candidates campaigned heavily on cost-of-living concerns, a strategy that resonated with voters according to recent polling. A Reuters/Ipsos poll found that 48 percent of voters ranked cost of living as the most important factor in their decision.

Republican leaders offered varying explanations for the losses. Texas Senator Ted Cruz identified affordability as the primary issue for the electorate. Vice President JD Vance posted on X that the ongoing Iran war was the main driver, though he also cited cost of living. Some Democrats challenged Vance’s assessment by pointing to his previous support for Trump’s military operations in the Middle East.

On Friday, Trump turned his attention to the economic role of artificial intelligence, a sector he has referred to as superintelligence. He stated on Truth Social that he would work with states eager to host AI data centers. He described these facilities as “GOLD,” arguing that only foolish leadership would reject the riches they bring to local economies.