Nasdaq Slides Into Correction as Trump Blames Democrats
Tech stocks drove a historic Wall Street sell-off on Thursday, a day after Democrats won control of the House in the midterm elections.
Updated on Nov. 6, 2026 in Economic Indicators
Live Poll
Do you expect your healthcare coverage costs to get better or worse in 2027?
A historic sell-off driven by tech stocks hit Wall Street on Thursday, and the Nasdaq entered a correction. President Donald Trump posted that the stock market crashed because Democrats had a big Tuesday, following a surge in stocks the day after the midterm elections.
Why it matters
Investors reportedly grew wary of pending Democratic investigations, linking the market move to the political shift in Congress. Democrats are set to take control of Congress in 2027, a change that could shape market and policy expectations for the country.
The Nasdaq entered a correction after a historic tech-driven sell-off, following a surge in stocks the day after the midterms. Trump cited a 91-day stock market record high streak, but the source does not quantify the size of the decline or establish its cause.
The players
Donald Trump
Donald Trump is the current President of the United States, who blamed Democrats for the stock market sell-off in a social media post.
Bernie Sanders
Bernie Sanders is a U.S. senator from Vermont and a leading progressive voice who proposed passing Medicare for All.
Rick Scott
Rick Scott is a U.S. senator from Florida who objected to Democratic plans to pay for their agenda.
The details
Democrats won control of the House in the midterm elections, and stocks surged the next day. A historic sell-off driven by tech stocks hit Wall Street on Thursday, pushing the Nasdaq into a correction, and Trump blamed Democrats for the crash.
Timeline
November 3, 2026: Democrats won the midterm elections.
November 5, 2026: A historic tech-driven stock sell-off hit Wall Street.
2027: Democrats take control of Congress and premiums are set to rise.
Macro View
The One Big Beautiful Bill Act made cuts to healthcare programs, and millions are expected to lose coverage under it. Premiums are set to rise again in 2027, and the Medicare for All push could make healthcare a defining issue in the 2028 presidential election.
Premiums are set to rise again in 2027, and millions are expected to lose healthcare coverage under the One Big Beautiful Bill Act. Market swings like this sell-off can affect retirement accounts and household savings for those with stock holdings.
The takeaway
Market swings tied to political shifts can move quickly, so households with investments may benefit from reviewing their exposure over the coming year. Healthcare costs are also set to change in 2027, making it worth checking expected premium increases.
What happens next
Democrats are set to take control of Congress in 2027, and premiums are set to rise again that year.
Further reading
For broader market context, explore Economic Indicators coverage.
Source note: This article includes information reported by WJAR.
Live Poll
Do you expect your healthcare coverage costs to get better or worse in 2027?
