Possible scenario
Direct Border Escalation
14% Chance
A further Russian drone, missile or cyber incident creates a direct NATO-Russia confrontation risk. Both sides would likely try to avoid a declared war, but even a limited incident would cause a sharper market repricing than rhetoric alone.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Consumer Services -3.2%
Portfolio impact
S&P 500-1.9%
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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