Breaking: Stock Market Plummets to 'Correction' Zone as 'True Panic' Sets in Two Days After Election
Days after the political world turned on President Donald Trump, allowing Democrats to sweep into power, the financial world shivered to the core Thursday, fearing Trump might have been right on one very important thing.
“Don’t kill the Golden Goose!” Trump wrote in September as he tried to push back against political condemnation of the artificial intelligence sector’s growth, according to ABC News.
But two days after Democrats took power, stocks tumbled deeply as investors realized the intense hostility of Democrats to one of America’s hottest growth sectors.
“The Democratic blue tidal wave across the Senate and House was a seismic shift that will have a negative impact on the pace of the AI Revolution buildout in the U.S. over the next few years,” Yorkville analyst Dan Ives said, according to WABC-TV.
MSNOW’s Stephanie Ruhle kicked off her 930am segment gloating about how the markets were surging because Democrats won.
“[Investors] made it abundantly clear that they welcome a massive check on presidential power.”
The markets immediately tanked. https://t.co/nLVue8P1cW
— Western Lensman (@WesternLensman) November 5, 2026
As of 1:30 Eastern time, the Dow Jones average was down 1,700 points, CNBC noted, adding that the S&P 500 was facing its worst day in more than 18 months.
“This is a true panic,” said Jay Hatfield, CEO at Infrastructure Capital Advisors, according to The Wall Street Journal, which noted the U.S. faces “a potential regime shift” and a “slowdown in the data center build-out.
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“This is 100 percent about the chip stocks and the potential slowdown in the AI trade,” he said
Democrats destroyed the stock market and they haven’t even been sworn in yet.
— Gunther Eagleman™ (@GuntherEagleman) November 5, 2026
A report in The Wall Street Journal called Wall Street’s woes “a sea of red for semiconductor and data-center stocks today. Some folks in the industry may call it a ‘bloodbath.’”
The technical name for the tailspin is a correction, the Journal noted.
“A correction is a decline of at least 10 percent in a stock, index or other asset from a recent high,” the Journal noted.
$2,500,000,000,000 wiped out from the US stock market in just 60 minutes.
Democrats just popped the AI bubble. https://t.co/Bhrqe3Iwrb
— Bull Theory (@BullTheoryio) November 5, 2026
For example, it noted, the Nasdaq composite and Nasdaq 100 were both down more than 10 percent, with some AI and data-center stocks also down more than 10 percent.
The antipathy to AI of Democrats who will be grabbing the reins of power was showing in a post on X from Sen. Bernie Sanders of Vermont, who called for a national data center moratorium, adding, “Americans don’t want Big Tech oligarchs wrecking the environment, gutting jobs and threatening humanity’s future.”
Investors are “stepping away until they get a better sense of the implications of the midterms around the AI capex cycle in particular, which is the biggest economic tailwind we’ve had going for us for the last, call it, three years,” Tim Holland, chief investment officer at Orion, said, according to CNBC.
“It’s about tone and tenor from the party that did really well, incredibly well, at the federal level and at the state level,” he said.
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