New York stock exchanges suffer historic fall after advance of the Democratic Party and Trump points the finger at voters
American stock markets suffered a devaluation of US$ 2.5 trillion as a result of the government's defeat in the legislative election.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM GAZETA DO POVO · 2 MIN
A wave of pessimism took over Wall Street on November 5th, after the legislative election in the United States took place on November 3rd, according to Gazeta do Povo. With the Democratic Party's victory and control of Congress and state governments assured, the main stock indexes recorded severe losses amid massive sales of technology shares, as CNN found.
The financial fall eliminated a figure close to 2.5 trillion dollars from the US markets, according to Gazeta do Povo. The Dow Jones index closed down 3.44% reaching 51,523.06 points, while the S&P 500 fell 4.36% reaching 7,353.73 points, marking its most negative session since April 2025, according to Money Times. The Nasdaq fell 5.52%, totaling 24,314.997 points, accumulating a drop of more than 10% in relation to the record reached last month.
Faced with the financial setback, Donald Trump turned to the social network Truth Social to criticize the electorate, writing in the message that the burden falls entirely on the citizens who voted, according to Gazeta do Povo. In his post, Trump declared that the financial collapse occurred due to the strong performance of the opposition last Tuesday, as reported by the same source. Analysts such as Luca Girardi, from Nomad, pointed out to Money Times that the movement reflects an adjustment to multiples that were already compressed.
While the technology sector suffered additional pressure due to plans by newly elected Democratic candidates to impose regulatory limits on the development of advanced algorithms and prevent the expansion of server installations, the price of raw materials followed a different path, according to Gazeta do Povo. Oil futures rose on Nov. 5, reversing some of the previous session's 8% drop, according to InfoMoney. Brent oil for January rose 2.72%, trading at $90.52 a barrel on ICE in London, and WTI for December rose 3.88%, trading at $98.29 a barrel on Nymex.
What changes for the investor
The new political scenario in the American Congress brings caution to the allocation of capital in technology assets, a sector that faces stricter regulatory risks with the Democratic agenda for artificial intelligence. For investors exposed to Wall Street, volatility requires careful monitoring of market multiples and the reaction of risk assets to the new correlation of forces in Washington.
Automatically translated from Portuguese.
