Possible scenario
Downstream Margin Squeeze
23% Chance
High steel prices quickly flow into machinery, autos, appliances, and construction equipment. The immediate equity impact is negative for steel-consuming industrial firms, while inflation-sensitive assets price a modest risk of stickier goods prices.
Secondary impacts
- Industrials -1.5%
- Non-Energy Materials +1.1%
- Consumer Cyclicals -0.9%
Tickers
- WHR-1.5%
- CAT-1.2%
- DE-0.9%
- +0.9%
Portfolio impact
S&P 500-0.1%
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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