Possible scenario
Major Military Escalation
20% Chance
A larger TTP attack or Taliban border response leads Pakistan to widen its campaign beyond isolated militant sites. This would mark a material regional escalation, but still falls short of a systemic global shock because Afghanistan and Pakistan are not central to global energy or financial markets.
Initial impacts
- Market volatility Up
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- US dollar Up
- Oil prices Up
Secondary impacts
- Industrials +0.1%
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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