Charu Chanana, chief investment strategist at Saxo Bank, said midterm election
results increase uncertainty over future fiscal stimulus and raise the risk of
greater regulatory volatility. Democratic control of Congress would limit
Trump’s ability to further expand fiscal spending and push tax legislation,
though Congress would not be able to fully overturn the administration’s
economic agenda. She said the market’s immediate reaction reflects three
concerns: reduced scope for additional fiscal support; tighter regulation of AI
and large tech; and a potential slowdown in the growth momentum that underpins
the US-exception narrative. Chanana added markets may be premature in assuming
Democratic control necessarily implies weaker economic growth.
