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

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.