Possible scenario
Rates Drive Repricing
20% Chance
The market response is driven less by the Russell 2000 chart and more by renewed debate over the Fed’s restrictive policy stance. Investors reassess whether the September rate hike and 5% Treasury yields will keep pressuring small-cap balance sheets.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Up
Secondary impacts
- Finance -0.9%
- Consumer Cyclicals -0.8%
- Industrials -0.7%
Portfolio impact
S&P 500-0.5%
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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