Possible scenario
Truce With Friction
25% Chance
The formal truce survives, but implementation disputes accumulate around rare-earth licenses, chip controls, customs enforcement, and agricultural purchase verification. This is a plausible middle path because both governments may preserve the headline agreement while using administrative tools for leverage.
Initial impacts
- Market volatility Up
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- Copper Down
- US dollar Up
Secondary impacts
- Technology -0.9%
- Industrials
Portfolio impact
S&P 500-0.7%
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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