What if Fiscal stimulus reflation boom: deficit spending lifts nominal growth?
A large fiscal stimulus package juices nominal demand and growth, a reflationary boom that lifts cyclicals and breakevens while widening the deficit.
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 1–3 years 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-on shock. A large fiscal stimulus package juices nominal demand and growth, a reflationary boom that lifts cyclicals and breakevens while widening the deficit. The trigger decomposes into signed root‑shocks — Consumer spending ▲ · Yield-curve slope ▲ · Growth surprise ▲ · Inflation expectations ▲ · Risk appetite ▲ — 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 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▲ +0.9% hist -3.76–+8.71% · other way +11.0% (n=12) |
| 2 | Solana SOLon Hyperliquid 📈 chart | Crypto | ▲ +0.8% hist -2.29–+1.45% · other way -1.08% (n=9) |
| 3 | Hyperliquid (HYPE) HYPEon Hyperliquid | Crypto | ▲ +0.7% model prior · unmeasured |
| 4 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▲ +0.6% hist -0.51–+0.61% · other way +0.17% (n=12) |
| 5 | Ether ETHon Hyperliquid 📈 chart | Crypto | ▲ +0.6% hist -1.18–+3.14% · other way -2.84% (n=9) |
| 6 | Volatility (VIX) VIXon Hyperliquid 📈 chart | Vol | ▼ -0.5% hist -0.38–-0.12% · other way +2.43% (n=12) |
| 7 | Bitcoin BTCon Hyperliquid 📈 chart | Crypto | ▲ +0.5% hist -0.47–+1.65% · other way +0.03% (n=11) |
| 8 | S&P 500 SPXon Hyperliquid 📈 chart | Index | ▲ +0.3% hist -0.77–+0.63% · other way -1.52% (n=12) |
| 9 | Semiconductors SMHon Hyperliquid 📈 chart | Equity | ▲ +0.3% hist -0.2–+0.88% · other way -0.19% (n=12) |
| 10 | Gold XAUon Hyperliquid 📈 chart | Commodity | ▼ -0.3% hist -0.8–+0.18% · other way +1.32% (n=12) |
| 11 | Coinbase COINon Hyperliquid 📈 chart | Equity | ▲ +0.3% hist -3.08–+6.52% · other way +16.73% (n=9) |
| 12 | Tech sector XLK 📈 chart | Equity | ▲ +0.3% hist -0.52–+0.3% · other way -0.05% (n=12) |
| 13 | Financials XLF 📈 chart | Equity | ▲ +0.2% hist -0.25–+1.05% · other way +0.68% (n=12) |
| 14 | 30y Treasury yield DGS30 📈 chart | Rate | ▲ +3bp hist -3.37–+13.96% · other way -3.4% (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 |
|---|---|---|---|---|---|---|
| JPM JPM | LONG | +1.6% · 5d -0.0% ↺ fades | 71% | 39 | 0.35 | ✓ matches cascade |
| 10y yield DGS10 | LONG | +15bp · 5d +7bp | 66% | 40 | 0.28 | ✓ matches cascade |
| AMD AMD | SHORT | -1.8% · 5d -2.2% | 64% | 39 | 0.23 | ⚠ differs |
| 30y yield DGS30 | LONG | +12bp · 5d +4bp | 61% | 40 | 0.20 | ✓ matches cascade |
| XLK XLK | SHORT | -0.6% · 5d -0.8% | 62% | 39 | 0.18 | ⚠ differs |
| EURUSD EURUSD | LONG | +0.1% · 5d +0.0% | 62% | 39 | 0.18 | ⚠ differs |
| XLF XLF | LONG | +0.8% · 5d -0.1% ↺ fades | 60% | 39 | 0.17 | ✓ matches cascade |
| High-yield credit HYG | SHORT | +-0.0% · 5d +0.0% ↺ fades | 57% | 39 | 0.10 | ⚠ differs |
| MU MU | LONG | +1.0% · 5d -2.1% ↺ fades | 55% | 39 | 0.08 | ✓ matches cascade |
| SOL SOL | SHORT | -2.6% · 5d -7.5% | 55% | 38 | 0.07 | ⚠ differs |
| NDX NDX | SHORT | -0.8% · 5d -1.0% | 55% | 39 | 0.07 | ⚠ differs |
| Volatility VIX | SHORT | -0.1% · 5d -2.8% | 55% | 39 | 0.07 | ✓ matches cascade |
| NVDA NVDA | SHORT | -0.5% · 5d -3.1% | 55% | 39 | 0.07 | ⚠ differs |
| Bitcoin BTC | LONG | +1.3% · 5d -2.8% ↺ fades | 53% | 38 | 0.04 | ✓ matches cascade |