President Donald Trump Just Called Nov. 5 One of the Stock Market's "Worst Days in History" Due to Election Results -- but Warning Signs Have Been Apparent for Months

The Nasdaq Composite dropped 1,422 points on November 5, 2026, its largest single-day decline in 55 years, and President Donald Trump blamed the midterm election results, calling it one of the stock market's "worst days in history."

The article argues the selloff reflects problems that predate the vote. Three pressure points stand out.

Policy risk to AI buildout. A Democratic gubernatorial wave threatens AI data center expansion in Texas, Georgia, and Ohio. That puts AI infrastructure names such as NVDA and CRWV in the crosshairs, since their growth narratives depend on continued capacity buildout.

Stretched valuations. The Shiller P/E ratio sits at 42.84, versus a historical average of 17.45. That is roughly 2.5 times the long-run norm, leaving little cushion when sentiment turns.

Bond market warnings. The article cites bond market signals questioning whether AI infrastructure spending is sustainable.

Interpretation: the election may have acted as the trigger rather than the cause. When valuations run at multiples of historical norms, a single policy catalyst can force a repricing, and the concentration of risk in AI-linked names suggests the damage could extend beyond one session. SPCX sits in the same high-valuation growth bucket, though the article names no specific impact on it.