Possible scenario
Managed Limited Truce
35% Chance
A smaller truce remains highly plausible because both governments may prefer near-term stability without conceding on strategic sectors. This outcome would reduce tail risk while leaving tariffs, export controls, and industrial policy largely in place.
Initial impacts
- Market volatility Down
- Riskier companies' borrowing costs Down
- 10-year Treasury yield Up
- Oil prices Up
Secondary impacts
- Industrials +0.6%
- Energy +0.4%
Portfolio impact
S&P 500+0.3%
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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