Possible scenario
Deadlier Escalation Follows
15% Chance
A smaller but serious risk is that Russia follows the zero-casualty strike with a larger wave that causes deaths or hits critical infrastructure. This would raise near-term geopolitical risk, though still below crisis levels because the Russia-Ukraine war is already an established conflict.
Initial impacts
- Market volatility Up
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Industrials +0.9%
Portfolio impact
S&P 500-0.6%
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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