Trump Blames Democrats for Wall Street Rout After Midterm Losses, Fires Chief of Staff
President Donald Trump has blamed Democrats for a historic selloff on Wall Street following the Republican Party’s midterm election defeats, while announcing the ouster of his chief of staff and renewing threats against Iran, ANSA reported. The S&P 500 fell 4,3% — its worst day since April 2025 — and the Nasdaq composite dropped 5%, equivalent to more than 2.000 miliardi di dollari, according to Il Post. Nvidia shares lost 7%, while Tesla and SpaceX each fell 8%, and Tokyo’s Nikkei index dropped more than 5% the following morning, Sky TG24 reported. Trump wrote on Truth that the stock market had experienced “one of the worst days in history” after the election results and told voters their retirement plans had taken a hit, adding: “It’s not the Republicans’ fault, but the stupid Democrats’.”
Wiles Out, Miller in at the White House
The electoral collapse triggered the first personnel shake-up of Trump’s second term: chief of staff Susie Wiles was removed, and Trump named Stephen Miller — the architect of his immigration policies — to the role, ANSA reported. The move came at the request of leaders of the MAGA movement, the agency said. Trump, meanwhile, has continued to cast doubt on the election system itself, telling reporters in the Oval Office that “our elections are so rigged, you have no idea,” Sky TG24 reported — a generic charge rather than a specific accusation against this vote.
Iran: Deal or Destruction
On Iran, Trump delivered an ultimatum while his national security advisers met for the first time since the midterms. “O fanno l’accordo o li distruggo”, ANSA quoted him as saying. According to Axios, as reported by ANSA, Trump is weighing three options: new strikes — Fox News reported a possible date of November 9, during the new moon — continued economic strangulation of the Iranian regime, or a deal with significant concessions to Tehran. Diplomatic activity is running in parallel, with Iranian Foreign Minister Abbas Araghchi holding calls with mediators from Qatar, Saudi Arabia, Turkey, the United Arab Emirates, Oman and Egypt, ANSA reported. Vice President JD Vance has been pressing for a negotiated solution as the first plank of his 2028 agenda, the agency said.
Republicans Turn on Each Other Ahead of 2028
Vance came under fire for attributing the party’s losses to the Iran war while forgetting “tariffs and the cost of living,” the Wall Street Journal reported, as relayed by ANSA. Other prominent Republicans, including Florida Governor Ron DeSantis and Senator Ted Cruz of Texas, are positioning themselves against Vance, ANSA reported. Secretary of State Marco Rubio denied reports that he plans to leave the administration to run in 2028, telling Sky TG24: “My plan is to work for the president until the end of his term.” Defense Secretary Pete Hegseth also faces pressure: Representative Thomas Massie said he will file an impeachment motion against Hegseth when Congress reconvenes next week, writing on X that there is only one scenario in which he won’t refile it — “if Hegseth resigns,” ANSA reported. Hegseth responded that “impeachment didn’t work with Trump and won’t work with me,” according to Sky TG24.
Markets React to a Divided Washington
Democrats won control of both chambers of Congress, limiting Trump’s room to maneuver on trade policy and military spending, Milano Finanza reported. If Democrats also win the outstanding races in Mississippi and Alaska, they would reach 56 Senate seats, ANSA reported. Kokou Agbo-Bloua, global head of research for global markets at Société Générale, told Milano Finanza that cohabitation between Trump and a Democratic Congress “won’t be simple” and could slow or block funding for the Iran war and new tariffs under Section 301. The bank’s strategist favors European equities — with Germany first — and Italian BTP bonds, and sees the euro/dollar exchange rate at 1,10 by the end of 2026, Milano Finanza reported. Trump, for his part, is raising money through his super PAC, MAGA Inc., to pressure Republicans who might break with him ahead of 2028, Axios reported via ANSA.
Midterms Spark Investor Concerns over AI Regulations
Why did tech stocks fall after the midterms? Investors fear a Democratic Congress will impose stricter rules on AI companies, especially on energy- and water-hungry data centers, Il Post reported. Several Democratic candidates campaigned on tougher regulation of Big Tech.
When does the new Congress take office? January 3, Sky TG24 reported. Once the Democratic Senate formally takes control, Trump will no longer be able to confirm federal judges.
What is Trump’s stance on Iran right now? He is weighing three options — new military strikes, continued economic pressure, or a negotiated deal — according to Axios as reported by ANSA.