AI fears trigger global market meltdown, Trump blames Democrats

Shares of companies across the AI and technology sectors plunged after Democrats performed strongly in the elections, with their campaign focusing on slowing the development of artificial intelligence.

The tech-heavy Nasdaq Composite Index closed down more than 5.5%, wiping out an estimated $2.5 trillion (£1.9 trillion) in market value, according to Dow Jones data, BBC reported.

With other US stocks also declining, the market witnessed one of its worst trading days since 2025.

A similar trend was observed across Asian markets on Friday, where shares of companies manufacturing computer chips and other equipment essential to AI development suffered sharp losses.

Japan's Nikkei 225 fell 6% in early trading, with memory chipmaker Kioxia losing more than 12.6% and rival Tokyo Electron slipping 9.5%, BBC reported.

In South Korea, Samsung shares traded nearly 10% lower, while chipmaker SK Hynix plunged more than 11.5%.

Taiwan's Taiex index dropped more than 8.3%, with chipmaking giant TSMC tumbling nearly 8.5%.

Reacting to the market downturn, US President Donald Trump took to Truth Social and blamed the election results for the sharp decline.

"The Stock Market suffered one of the Worst Days in History based on the results of the Election. Such a sad thing to watch!" Trump wrote.

He added that the market had reached unprecedented levels through considerable effort before the election results triggered the downturn.

"Your 401(k)s have, therefore, dropped. Remember, it wasn’t Republicans, it was Dumocrats," he wrote, using a derogatory term for Democrats.

Trump sought to reassure investors, adding: "Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE."

In a separate post, the US President again blamed his political opponents for the market decline.

"The Stock Market crashed today because the Dumocrats had a big Tuesday — So sad to see, you only have yourselves to blame!" he wrote.Blaming further his political opponents, he wrote in a separate post: "The Stock Market crashed today because the Dumocrats had a big Tuesday — So sad to see, you only have yourselves to blame! "