Written and reviewed by Kevin Nerway · Last verified 1 November 2026
Key Takeaways
- The S&P 500 broke below key technical support between 7,620 and 7,632 following a 30% collapse in Intel shares after its earnings report.
- US third-quarter GDP expanded by 3.4% and September core PCE inflation rose 0.3% month-on-month, reinforcing expectations for a December Federal Reserve rate hike.
- Upcoming market catalysts include Tuesday's US midterm elections and Friday's non-farm payrolls report.
- Safe-haven demand pushed Treasury yields lower, putting downward pressure on the US dollar alongside declining equity markets.
On November 1, 2026, our desk at PropFirmScan tracked a technical breakdown in the S&P 500, which slipped below its 21-day exponential moving average and closed underneath key support between 7,620 and 7,632. The primary catalyst was a massive 30% earnings drop in Intel shares, which triggered wider selling across technology equities and renewed scrutiny of the ongoing artificial intelligence trade. I am monitoring this environment closely, as funded account holders face elevated risk heading into a week packed with political and macroeconomic events.
Breakdown Below 7,620 and the Tech Sector Drag
The technology sector led last week's stock market decline, sparked directly by Intel's steep post-earnings sell-off. The selling quickly extended into the broader equity market, pushing indices to critical junctures. From a chart perspective, the daily close below the 7,620–7,632 zone—a region that had previously served as resistance before turning into support—tilts the near-term index bias to the downside.
Traders using Support and Resistance levels should note that the index has also fallen beneath its 21-day exponential Moving Average. Without a rapid, volume-backed recovery in mega-cap technology shares, technical structure points toward continued pressure on equity valuations.
Hawkish Central Banks and Economic Drivers
Macroeconomic conditions offer little immediate backing for a rate-cut-driven equity relief rally. The Federal Reserve maintained interest rates at its latest meeting, but strong economic prints make a December rate hike highly probable. US third-quarter GDP expanded by 3.4%, while core PCE inflation increased by 0.3% month-on-month in September.
Globally, central bank tightening expectations remain firm. The Bank of England is anticipated to raise interest rates to 4% on Thursday, driven by persistent energy price pressures linked to ongoing Middle East conflict. Analyzing institutional positioning and order flow analysis around economic-data events shows that rate hike expectations across major central banks are constraining upside momentum for equities.
To navigate these conditions without breaching evaluation limits, traders can review a trading restriction comparison for news traders to understand how firms manage exposure during major policy decisions.
Midterm Elections Introduce New Political Risk
Tuesday's US midterm elections represent a key volatility catalyst. A split Congress or a full Democratic sweep in both the House of Representatives and the Senate would restrict executive legislative ambitions. A complete Democratic win could reintroduce market concerns regarding federal debt-ceiling negotiations and government shutdown risks.
Equity index traders preparing for volatility around these political developments can consult our guide on How to Trade Prop Firm Indices: A Complete NAS100 and US30 Guide as well as the Economic Calendar for Traders: How to Use It to structure systematic event risk management.
Managing Drawdown Risk Across Prop Firm Evaluation Accounts
When tech sector drops align with macro events, daily drawdowns can occur rapidly due to overnight gaps and sudden liquidity shifts. Safe-haven buying in Treasuries has dragged yields lower, which in turn weighted on the US dollar during tech pullbacks.
Funded traders navigating evaluation phases during major event weeks must prioritize strict allocation controls. You can review fastest withdrawal options for funded traders to ensure your capital management strategy is aligned with firm policies, or evaluate how traders perform in volatile conditions to gauge benchmark success rates during market drawdowns.
For traders seeking evaluations structured for volatile market phases, selecting best-value firms for volatile market sessions and utilizing our due diligence tool for prop firms provides a structured way to compare loss limit frameworks across top providers.
Market Impact Snapshot
| Asset | Direction | Confidence |
|---|---|---|
| S&P 500 | Bearish | High |
| US Dollar | Bearish | Medium |
| US Treasuries | Bullish | Medium |
| British Pound | Bullish | Medium |
Frequently Asked Questions
Why did the S&P 500 break key support levels
A 30% drop in Intel shares following earnings results triggered broad selling across the technology sector. This renewed doubts surrounding the AI trade, pushing the S&P 500 below its 21-day exponential moving average and past key support between 7,620 and 7,632.
How are central bank rate expectations impacting equities
Strong US data, including 3.4% GDP growth in Q3 and a 0.3% monthly core PCE print, has made a December Fed rate hike highly likely. Combined with an expected Bank of England rate hike to 4%, hawkish central bank stances limit the potential for rate-cut-driven equity rallies.
What risks do the US midterm elections pose for equity markets
Tuesday's midterm elections could yield a Democratic sweep of Congress, raising market concerns over debt-ceiling debates and government shutdown risks. This political uncertainty adds downside pressure to benchmark equity indices.
How should funded traders handle Friday's non-farm payrolls release
Friday's jobs report will shape Fed rate hike expectations for December. Funded traders should check firm-specific news-trading rules, limit position sizing, and avoid holding unhedged positions across high-impact data releases.