Wall Street Plummets in Worst Post-Midterm Slide in a Century
U.S. stocks suffer a historic $2.9 trillion loss as Democratic midterm victories trigger the worst second-day market crash in nearly hundred years.
POLICY WIRE — New York, USA — Major U.S. equity indexes experienced a violent reversal on Thursday, effectively wiping out the gains achieved the previous day as investors grappled with the reality of a Democratic midterm sweep.
The market downturn marked the most severe second day following a midterm election in nearly a century of historical data. The sharp decline was nearly twice as deep as the 2.3% drop that previously held the record set in 2002.
Investor anxiety was fueled by fears regarding potential Democratic-led restrictions on artificial intelligence. This shift in sentiment triggered unprecedented losses for the dollar just 24 hours after a massive post-election rally.
Companies within the S&P 500 saw approximately $2.9 trillion in market capitalization evaporate during the session.
With Democrats securing control of both the House and the Senate during the midterm elections, the market is facing what is historically considered the most unfavorable environment for equity growth.
While the 2026 market rout erased trillions of dollars in wealth, the S&P 500 has not yet fallen to the catastrophic levels of loss seen during previous major financial crashes.
Reporting by Policy-Wire (PW)em>