Saxo Bank chief investment strategist Charu Chanana said after overnight steep losses on Wall Street it is still too early to conclude the market has entered a bear market. She said the decline mainly reflects panic, forced liquidations and deteriorating sentiment; while selling has broadened, the impact so far is concentrated in the AI investment cycle, regulatory uncertainty and crowded positioning. The key question is whether weakness will spread to corporate earnings, credit conditions, empl

Saxo Bank chief investment strategist Charu Chanana said after overnight steep losses on Wall Street it is still too early to conclude the market has entered a bear market. She said the decline mainly reflects panic, forced liquidations and deteriorating sentiment; while selling has broadened, the impact so far is concentrated in the AI investment cycle, regulatory uncertainty and crowded positioning. The key question is whether weakness will spread to corporate earnings, credit conditions, employment and economic growth. Extreme liquidation could also create conditions for a rebound. She added: "Once selling pressure eases, the market may rally quickly, sometimes even before economic data show clear improvement."