Possible scenario
Security Incident Escalation
17% Chance
A balloon incident triggers a physical security event, either through interception, debris, or an encounter between border forces. This remains less likely than containment because Belarus and Russia have incentives to probe NATO without crossing into an unmistakable armed attack.
Initial impacts
- Market volatility Up
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- US dollar Up
- Oil prices Up
Secondary impacts
- Industrials +1.7%
Portfolio impact
S&P 500-0.7%
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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