Possible scenario
Allied Deterrence Response
25% Chance
Washington, Seoul, and Tokyo respond with visible but calibrated deterrence steps, including surveillance flights, missile-defense drills, and joint statements. This is plausible because North Korea's September sequence follows a period of reduced U.S.-South Korea drills, creating pressure on the allies to demonstrate readiness.
Initial impacts
- Market volatility Up
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- US dollar Up
Secondary impacts
- Industrials +0.8%
- Technology -0.2%
Portfolio impact
S&P 500-0.2%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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