What if AUKUS Pillar-2 expands; China decries a regional arms race?
AUKUS partners accelerate hypersonics and undersea-tech sharing, prompting Chinese retaliation rhetoric; regional defense spend rises and the geopolitical risk premium ticks up across Asia-Pacific.
how we built this number — every step
The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.
What it would mean
If this plays out, it is a risk-off shock. AUKUS partners accelerate hypersonics and undersea-tech sharing, prompting Chinese retaliation rhetoric; regional defense spend rises and the geopolitical risk premium ticks up across Asia-Pacific. The trigger decomposes into signed root‑shocks — Defense spending ▲ · Geopolitical risk ▲ · Risk appetite ▼ · Trade tension ▲ — which propagate through our causal graph to the markets below.
If it happens — the markets it would move
Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.
| Market | Class | Projected move | |
|---|---|---|---|
| 1 | Volatility (VIX) VIXon Hyperliquid 📈 chart | Vol | ▲ +3.9% hist -0.68–+6.89% · other way +3.23% (n=12) |
| 2 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▼ -2.1% hist -1.36–-0.62% · other way -0.37% (n=12) |
| 3 | Tech sector XLK 📈 chart | Equity | ▼ -1.4% hist -0.87–-0.1% · other way -0.34% (n=12) |
| 4 | Semiconductors SMHon Hyperliquid 📈 chart | Equity | ▼ -1.2% hist -0.7–-0.38% · other way +2.23% (n=12) |
| 5 | Lockheed LMT 📈 chart | Equity | ▲ +1.1% hist +0.08–+1.32% · other way -3.24% (n=12) |
| 6 | Northrop NOC 📈 chart | Equity | ▲ +1.0% hist -0.19–+1.68% · other way -1.37% (n=12) |
| 7 | RTX RTXon Hyperliquid 📈 chart | Equity | ▲ +0.8% hist -2.01–+1.18% · other way -4.07% (n=12) |
| 8 | S&P 500 SPXon Hyperliquid 📈 chart | Index | ▼ -0.8% hist -1.02–-0.04% · other way +0.57% (n=12) |
| 9 | Nvidia NVDAon Hyperliquid 📈 chart | Equity | ▼ -0.8% hist -0.91–-0.09% · other way +4.75% (n=12) |
| 10 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▼ -0.8% hist -1.85–+2.59% · other way +26.92% (n=12) |
| 11 | TSMC TSMon Hyperliquid 📈 chart | Equity | ▼ -0.8% hist -0.76–-0.15% · other way +2.51% (n=12) |
| 12 | AMD AMDon Hyperliquid 📈 chart | Equity | ▼ -0.7% hist -0.95–+0.92% · other way -0.48% (n=12) |
| 13 | Broadcom AVGOon Hyperliquid 📈 chart | Equity | ▼ -0.7% hist -1.05–+2.18% · other way +0.88% (n=12) |
| 14 | Micron MUon Hyperliquid 📈 chart | Equity | ▼ -0.7% hist -1.82–+0.43% · other way +2.73% (n=12) |
Probable recommendation
Historical precedent — what analogous events actually did
Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.
| Asset | History says | Abnormal (20d · 5d) | Hit | n | Confidence | vs cascade |
|---|---|---|---|---|---|---|
| COIN COIN | LONG | +14.1% · 5d +7.8% | 85% | 11 | 0.55 | ⚠ differs |
| TRY TRY | SHORT | -2.1% · 5d +0.4% ↺ fades | 79% | 26 | 0.49 | ✓ matches cascade |
| CNY CNY | SHORT | -0.5% · 5d -0.2% | 69% | 28 | 0.37 | ✓ matches cascade |
| ETH ETH | SHORT | -4.7% · 5d -4.8% | 68% | 21 | 0.29 | ✓ matches cascade |
| MRVL MRVL | SHORT | -2.2% · 5d -2.9% | 68% | 28 | 0.25 | ✓ matches cascade |
| AUD AUD | SHORT | -1.1% · 5d -0.4% | 66% | 26 | 0.24 | ✓ matches cascade |
| INTC INTC | SHORT | -1.8% · 5d -1.2% | 62% | 39 | 0.21 | ✓ matches cascade |
| XLF XLF | SHORT | -0.2% · 5d -0.1% | 62% | 29 | 0.21 | ✓ matches cascade |
| AVGO AVGO | LONG | +2.3% · 5d -1.7% ↺ fades | 60% | 26 | 0.20 | ⚠ differs |
| High-yield credit HYG | SHORT | -0.4% · 5d -0.3% | 62% | 26 | 0.19 | ✓ matches cascade |
| RTX RTX | SHORT | -2.3% · 5d -1.8% | 58% | 39 | 0.15 | ⚠ differs |
| NVDA NVDA | SHORT | -0.4% · 5d -3.7% | 59% | 29 | 0.13 | ✓ matches cascade |
| INR INR | SHORT | -0.4% · 5d -0.1% | 57% | 26 | 0.12 | ✓ matches cascade |
| XLK XLK | LONG | +0.4% · 5d -0.6% ↺ fades | 56% | 29 | 0.10 | ⚠ differs |