Wall Street Recovers After Trump Blames Voters for Post-Election Market Crash
Stocks began to rebound after a massive sell-off as Trump blamed the public for the market slump following landslide Democratic midterm victories.
POLICY WIRE — Washington, D.C. — Financial markets showed signs of stabilization on Friday following a volatile Thursday session where President Donald Trump blamed the American electorate and the Democratic party for a sharp downturn in stock values.
On Thursday alone, the Nasdaq Composite plummeted by 5.52 percent, while the S&P 500 saw a 4.36 percent decline as investors reacted to the sweeping election results.
In statements posted on Truth Social, Trump asserted that the market experienced one of its worst days in history due to the election outcomes. He specifically blamed “Dumocrats” rather than Republicans, later telling voters they had only themselves to blame for the situation.
The trend began to shift on Friday morning, with the S&P 500 rising 0.70 percent and the Nasdaq climbing 1.28 percent from the previous day’s losses.
The political landscape shifted as Democrats secured a 54 to 44 majority in the Senate, with counts still pending in Alaska and Mississippi. In the House, the opposition is projected to hold 253 seats compared to the 157 held by the GOP.
This market volatility coincides with internal friction within the Trump administration. Reports suggest the president is considering the dismissal of Defense Secretary Pete Hegseth, while Secretary of State Marco Rubio is said to be considering a resignation.
Rep. James Comer, the Kentucky Republican who leads the House Oversight Committee, did not confirm if he would support Hegseth’s continued tenure when questioned on Friday.
While Democrats have signaled their intent to impeach Hegseth, administration officials are reportedly evaluating his removal from the Pentagon.
Comer noted that the decision regarding Hegseth rests with the president but remarked that there are significant questions surrounding the administration’s strategy in Iran. He suggested that Republican voters are more concerned with the situation in Iran than their Democratic counterparts.
Earlier speculation suggested Hegseth might seek a seat in the Tennessee Senate after Marsha Blackburn won the governorship. However, it now appears he is not a candidate for that position, leaving him in his current role unless terminated.
In other legislative news, Senator-elect Abdul El-Sayed expressed a willingness to collaborate with Trump on reducing aid to Israel. The Michigan Democrat, a critic of Israeli military actions in Gaza, supported a proposal to cut $4 billion in funding by year-end.
El-Sayed stated on NewsNation that the United States should not continue subsidizing a foreign military that uses American funds for what he considers awful actions, questioning the continued weapons sales to the nation.
Reporting by Policy-Wire (PW)
