Possible scenario
Rate Anxiety Persists
30% Chance
Investors may interpret the Stoxx 600 decline as renewed concern that central banks will keep policy restrictive. Spain’s stronger inflation reading and recent Fed projections leave markets vulnerable to a modest repricing of rate expectations.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Up
- US dollar Up
Secondary impacts
- Technology -1.6%
- Consumer Cyclicals -1.4%
Portfolio impact
S&P 500-1.2%
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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