What if India and Pakistan trade strikes over Kashmir?
Contained nuclear-rivalry scare: VIX +11, modest Nasdaq/S&P dip, a token oil bid. Closest measured rhyme is the May-2025 and 2019 Pulwama/Balakot exchanges — Nifty and the rupee dipped then recovered within a week once both sides signaled de-escalation. Transmission: neither is a major commodity supplier, so the global beta hit is sentiment, not fundamentals; the local trade is short INR and Indian equities intraday, but the Gulf remittance/oil-import channel is the real tail — fade unless strikes hit cities or the nuclear ladder is climbed.
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. India and Pakistan exchange cross-border strikes over Kashmir, raising nuclear-rivalry fears. The trigger decomposes into signed root‑shocks — Geopolitical risk ▲ · Oil supply risk ▲ — 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 | ▲ +11.3% hist +1.88–+9.03% · other way -0.36% (n=12) |
| 2 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▼ -4.2% hist -2.24–-0.81% · other way -0.34% (n=12) |
| 3 | Tech sector XLK 📈 chart | Equity | ▼ -2.8% hist -1.65–-0.8% · other way -0.15% (n=12) |
| 4 | S&P 500 SPXon Hyperliquid 📈 chart | Index | ▼ -2.4% hist -1.61–-0.81% · other way +1.22% (n=12) |
| 5 | Semiconductors SMHon Hyperliquid 📈 chart | Equity | ▼ -2.0% hist -1.42–-0.6% · other way +1.95% (n=12) |
| 6 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▼ -1.7% hist -2.95–+3.89% · other way +31.53% (n=12) |
| 7 | Gold XAUon Hyperliquid 📈 chart | Commodity | ▲ +1.1% hist +0.34–+0.91% · other way -0.22% (n=12) |
| 8 | Brent crude BRENTon Hyperliquid 📈 chart | Commodity | ▲ +1.2% hist -1.27–+1.1% · other way -3.03% (n=12) |
| 9 | Solana SOLon Hyperliquid 📈 chart | Crypto | ▼ -1.2% hist -1.77–+1.11% · other way -3.0% (n=12) |
| 10 | Nvidia NVDAon Hyperliquid 📈 chart | Equity | ▼ -1.5% hist -2.8–+0.21% · other way +3.19% (n=12) |
| 11 | WTI crude CLon Hyperliquid 📈 chart | Commodity | ▲ +0.9% hist -5.44–+1.3% · other way -2.56% (n=12) |
| 12 | AMD AMDon Hyperliquid 📈 chart | Equity | ▼ -1.3% hist -2.1–+0.02% · other way -0.61% (n=12) |
| 13 | Broadcom AVGOon Hyperliquid 📈 chart | Equity | ▼ -1.3% hist -1.18–+1.03% · other way +0.91% (n=12) |
| 14 | Micron MUon Hyperliquid 📈 chart | Equity | ▼ -1.3% hist -5.4–+0.71% · other way +2.93% (n=12) |
Probable recommendation
Why we may diverge from history
Trust the cascade short on COIN/MSTR: +16-22% history is regime-contaminated by 2024-25 BTC-bull windows; an India-Pakistan nuclear scare has no real crypto-bid channel, the move is driven elsewhere.
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 | +12.0% · 5d +3.5% | 77% | 12 | 0.47 | ⚠ differs |
| CL CL | SHORT | -4.9% · 5d -2.6% | 70% | 25 | 0.36 | ⚠ differs |
| CNY CNY | SHORT | -0.6% · 5d -0.1% | 69% | 25 | 0.36 | ✓ matches cascade |
| NDX NDX | SHORT | -0.6% · 5d -0.9% | 72% | 32 | 0.34 | ✓ matches cascade |
| MU MU | SHORT | -4.2% · 5d -4.8% | 70% | 32 | 0.31 | ✓ matches cascade |
| MRVL MRVL | SHORT | -1.2% · 5d -3.4% | 70% | 25 | 0.30 | ✓ matches cascade |
| INTC INTC | SHORT | -3.6% · 5d -2.3% | 68% | 36 | 0.30 | ✓ matches cascade |
| Volatility VIX | LONG | +3.6% · 5d +4.5% | 66% | 29 | 0.29 | ✓ matches cascade |
| AMD AMD | SHORT | -1.3% · 5d -0.8% | 69% | 36 | 0.29 | ✓ matches cascade |
| USDJPY USDJPY | LONG | +1.6% · 5d +0.2% | 66% | 27 | 0.27 | ⚠ differs |
| NVDA NVDA | SHORT | -1.9% · 5d -4.8% | 62% | 26 | 0.21 | ✓ matches cascade |
| ETH ETH | SHORT | -4.6% · 5d -3.9% | 65% | 17 | 0.21 | ✓ matches cascade |
| SOL SOL | LONG | +1.8% · 5d -5.2% ↺ fades | 65% | 12 | 0.19 | ⚠ differs |
| High-yield credit HYG | SHORT | -0.6% · 5d -0.1% | 62% | 22 | 0.19 | ✓ matches cascade |
Why this probability
India-Pak skirmishes recur (2019,2025); limited strikes common but full escalation contained; 18mo. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.