Donald Trump takes credit for a stock market rally that welcomed his defeat

Donald Trump rarely misses a chance to claim credit for a rising stock market, but his latest boast was particularly audacious.

Stocks initially rallied after Democrats scored a landslide victory in the US midterm elections, with the Dow Jones Industrial Average enjoying its best day in 18 months and the S&P 500 hitting all-time highs.

Trump, who had warned a Democratic victory would cause a 1929-style depression, took the credit regardless in a social media post. “Stock Market just hit another Record High – 91 Days in just a short period of time – Less than two years. Your 401(k)s are through the roof. Record Setting All! President DONALD J TRUMP.”

Ironically, the initial rally appeared to reflect hopes of constraints on Trump. Markets dislike uncertainty, and a divided government makes sweeping policy changes harder.

His weakened position may also encourage a more conciliatory approach to Iran, helping send oil prices tumbling. As it happened, the mood changed sharply on Thursday, with stocks plunging amid fears that Democratic control would bring tougher regulation of the AI industry.

The same election that might constrain Trump could also constrain the AI investment boom. Having been so quick to claim the gains, Trump may now find it harder to blame the Democrats for the losses.

His stock market boasting is silly, given presidents have relatively little influence over share prices, which are driven by everything from earnings to valuations.

Markets also rise over time, allowing most presidents to claim many record highs. Still, there is a useful side to his fixation. Trump is not a details man, but it is telling that he knows exactly how many record highs the market has chalked up on his watch.

[ US stocks drop sharply as Democrats win raises fears about AI investmentOpens in new window ]

After Trump’s 2024 victory, Wharton finance professor Jeremy Siegel described him as the “most pro-stock-market president” in US history, arguing his identification with market performance could act as a check on policy excesses.

His retreat from sweeping tariffs in April 2025, after markets and bond yields turned against him, offered an early demonstration. Trump’s preoccupation with market records may be misplaced, but investors may yet have reason to be grateful for his vanity.