S&P 500 Retreats As Traders Reduce Risks Ahead Of U.S. Inflation Reports

Disney Slumps as Quarterly Report Underperforms Expectations

The S&P 500 is facing significant pressure as traders assess the ambiguous midterm election results in the United States and fret over the significant sell-off in cryptocurrency markets.

Energy stocks, which are falling as a result of the sharp decline in oil prices, are driving the sell-off. In today's trading session, shares of Occidental Petroleum, Hess Corporation, and Devon Energy are down 5% to 7%.

Due to its quarterly report falling short of analyst forecasts, Disney is down 13%. The market is also dissatisfied with the company's short-term business outlook.

As a result of traders' reactions to Elon Musk's sales of the stock, Tesla is down 6%. Musk just sold over $4 billion worth of Tesla stock to raise money for his Twitter transaction.

NVIDIA is down 5% as investors fear that the decline in cryptocurrency markets may lower demand for the company's goods.

From a broad perspective, the sell-off is extensive, and all market segments have been under significant pressure.

Traders get ready for reports on US inflation

The United States will announce inflation figures tomorrow, so traders should be aware of this. Analysts anticipate that the inflation rate will have decreased to 8% in October from 8.2% in September. It appears that some market participants have made the decision to lower their risk exposure before this significant report.

The S&P 500 is currently attempting to settle beneath the 3760 support level. If successful, the S&P 500 will move in the direction of the next support level at 3725. A move below this point will allow for a test of the support level at 3690.

The S&P 500's closest upward resistance level is found at 3805. The S&P 500 will move in the direction of the 3835 resistance level if it rises again above this level. If the S&P 500 is able to hold above 3835, it will move toward the 3885 resistance level.