Global markets plunge as Trump blames Democrats for trillion-dollar selloff

A global wave of selling wiped out trillions of dollars in stock market value from Wall Street to Tokyo, Seoul and Taipei. The selloff followed a sharp drop on Wall Street and erased much of the recent rally driven by artificial intelligence stocks.

Investors reassessed technology valuations and huge AI infrastructure spending after Democrats won control of both chambers of Congress in the November 3 US midterm elections. Some investors fear stricter oversight of AI and new limits on data center construction.

“The market suffered one of the worst days in history because of the election results.”

In Tokyo, the Nikkei 225 fell as much as 7.1 percent intraday to 56,745.81 points before paring losses. It stood at 57,858.61 during the break, down 5.27 percent or 3,219 points, and briefly moved 20 percent below its June high toward technical bear-market territory.

South Korean and Taiwanese markets each lost more than 8 percent. Samsung Electronics fell nearly 10 percent and SK Hynix about 12 percent in Seoul, while Kioxia lost 14 percent in Japan and TSMC dropped as much as 8.5 percent in Taiwan. SoftBank shares fell 11 percent.

US President Donald Trump blamed Democrats for the market decline in a Truth Social post, calling it one of the worst days in stock market history because of the election results. He added that the United States would soon be bigger and stronger than ever, without explaining what he meant.

European futures initially pared losses and traded down 0.6 percent, while Nasdaq futures rose 1.4 percent, according to Reuters. A Saxo investment strategist said panic also fueled the selling as investors closed similar positions at the same time.