What if Labor-cost arbitrage shifts services jobs to AI plus low-cost onshore?
Firms combine AI automation with relocation to low-cost US regions to cut services-delivery costs, pressuring high-cost coastal employment and offshore providers alike; the dual arbitrage reshapes services-sector margins and labor geography.
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 mixed shock. Firms combine AI automation with relocation to low-cost US regions to cut services-delivery costs, pressuring high-cost coastal employment and offshore providers alike; the dual arbitrage reshapes services-sector margins and labor geography. The trigger decomposes into signed root‑shocks — Job displacement ▲ · Consumer spending ▼ · Risk appetite ▲ · Robotics productivity ▲ — 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 | Nvidia NVDAon Hyperliquid 📈 chart | Equity | ▲ +0.7% hist -4.0–+5.87% · other way -2.59% (n=12) |
| 2 | Semiconductors SMHon Hyperliquid 📈 chart | Equity | ▲ +0.5% hist -0.17–+1.02% · other way +0.31% (n=12) |
| 3 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▲ +0.5% hist +0.11–+0.62% · other way -0.23% (n=12) |
| 4 | AMD AMDon Hyperliquid 📈 chart | Equity | ▲ +0.3% hist -6.57–+3.7% · other way +2.42% (n=12) |
| 5 | Broadcom AVGOon Hyperliquid 📈 chart | Equity | ▲ +0.3% hist -1.52–+3.58% · other way +2.12% (n=12) |
| 6 | Micron MUon Hyperliquid 📈 chart | Equity | ▲ +0.3% hist -6.63–+4.96% · other way -1.83% (n=12) |
| 7 | TSMC TSMon Hyperliquid 📈 chart | Equity | ▲ +0.3% hist -0.29–+0.8% · other way -0.68% (n=12) |
| 8 | Marvell MRVLon Hyperliquid 📈 chart | Equity | ▲ +0.3% hist -2.3–+1.69% · other way +1.31% (n=12) |
| 9 | Tech sector XLK 📈 chart | Equity | ▲ +0.3% hist +0.14–+0.37% · other way -0.23% (n=12) |
| 10 | ASML ASMLon Hyperliquid 📈 chart | Equity | ▲ +0.3% hist -2.24–+1.89% · other way -2.49% (n=12) |
| 11 | Qualcomm QCOMon Hyperliquid 📈 chart | Equity | ▲ +0.2% hist -2.47–+1.75% · other way -2.03% (n=12) |
| 12 | Intel INTCon Hyperliquid 📈 chart | Equity | ▲ +0.2% hist -0.21–+0.37% · other way -2.49% (n=12) |
Probable recommendation
Historical precedent — what analogous events actually did
Across 7 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 |
|---|---|---|---|---|---|---|
| AVGO AVGO | LONG | +3.3% · 5d +0.8% | 87% | 7 | 0.57 | ✓ matches cascade |
| US dollar DXY | SHORT | -1.1% · 5d -0.5% | 87% | 7 | 0.51 | · |
| AMD AMD | SHORT | -6.8% · 5d +0.2% ↺ fades | 87% | 7 | 0.47 | ⚠ differs |
| MRVL MRVL | SHORT | -2.6% · 5d +1.3% ↺ fades | 80% | 7 | 0.42 | ⚠ differs |
| QCOM QCOM | SHORT | -2.7% · 5d -0.0% | 80% | 7 | 0.34 | ⚠ differs |
| MU MU | SHORT | -7.2% · 5d -2.5% | 73% | 7 | 0.33 | ⚠ differs |
| ASML ASML | SHORT | -2.6% · 5d -0.5% | 73% | 7 | 0.29 | ⚠ differs |
| High-yield credit HYG | SHORT | -0.8% · 5d -0.3% | 73% | 7 | 0.29 | · |
| 10y yield DGS10 | LONG | +7bp · 5d -4bp ↺ fades | 73% | 7 | 0.28 | · |
| INTC INTC | SHORT | -0.3% · 5d +0.5% ↺ fades | 67% | 7 | 0.23 | ⚠ differs |
| Bitcoin BTC | LONG | +4.3% · 5d -1.7% ↺ fades | 67% | 7 | 0.23 | · |
| NVDA NVDA | LONG | +5.6% · 5d +3.2% | 60% | 7 | 0.16 | ✓ matches cascade |
| Volatility VIX | SHORT | -4.8% · 5d -7.3% | 60% | 7 | 0.14 | · |
| Gold XAU | LONG | +0.2% · 5d +0.1% | 53% | 7 | 0.05 | · |