Stocks Slide as Bitcoin Tumbles and Policy Uncertainty Nudges Investors Toward Safer Ground

Why so many Americans are falling behind 👇

U.S. stocks finished lower Monday as a broad risk-off tone swept through financial markets, driven by a sharp drop in Bitcoin, lingering policy uncertainty, and signs that consumers are leaning more heavily on financing to sustain holiday spending. The pullback came despite gains in crude oil and gold, which outperformed as investors rotated toward hard assets.

The Dow Jones Industrial Average fell 427.09 points to 47,289.3 (-0.90%), while the S&P 500 slipped 36.44 to 6,812.65 (-0.53%). The Nasdaq Composite lost 89.76 to end at 23,275.9 (-0.38%). Small caps were hit hardest, with the Russell 2000 down 1.26% to 245.62, reflecting renewed pressure on domestically focused, higher-beta names.

The day’s most dramatic move came from crypto markets. Bitcoin plunged 6.43% to $85,469.12, extending a weekend slide and weighing on risk appetite across assets tied to investor sentiment. The CBOE Volatility Index popped 4.46% to 17.08, signaling a moderate uptick in hedging demand.

Commodities moved in the opposite direction. Crude oil (Jan 26) rose 1.64% to $59.51, while gold (Feb 26) climbed 0.37% to $4,270.80, with traders favoring defensive positioning amid crosscurrents in macro data and consumer behavior.

Those crosscurrents were thrown into sharper relief by fresh holiday-shopping figures summarized in research notes. Black Friday weekend sales delivered a record $18.2 billion in online sales, driven in part by an 11% year-over-year surge in Buy Now, Pay Later (BNPL) usage. But the backdrop is unsettled: 42% of BNPL users missed payments in 2025. Connecticut Attorney General William Tong warned, “Buy now, pay later may appear to be a convenient way to afford a purchase… but shoppers need to watch out for debt traps.” Senator Richard Blumenthal added, “A holiday splurge could be a New Year scourge.” The elevated use of installment financing has become a focal point for regulators and investors heading into the Goldman Sachs financial-services conference, where delinquencies and consumer-credit migration are expected to dominate discussion.

Tech names were mixed ahead of earnings catalysts. Analysts at Wedbush reiterated an OUTPERFORM rating and $600 price target for CrowdStrike, forecasting another strong quarter as the cybersecurity company deepens its exposure to AI-driven security platforms. In the firm’s note, Wedbush analysts wrote, “We believe the Street is underestimating the growth potential for CrowdStrike as a second/third derivative beneficiary of the AI Revolution…” as the company expands its Charlotte AI framework and integrates recent acquisitions. Those comments, drawn from both the Wedbush report and the research summary , provided a modest counterweight to the broader tech decline but were not enough to lift index performance into the close.

Elsewhere, sentiment around household finances and wealth management remained in focus following findings from a recent BMO study on women navigating divorce. The Confidence Gap: From uncertainty to financial clarity, the journey to rebuilding wealth after divorce found that women whose spouses handled household finances were more likely to receive lower-than-expected settlements, and often required more than a year to rebuild financial confidence. 97% of respondents who worked with a financial advisor reported improved confidence post-divorce. Michele Havens, Head of BMO U.S. Wealth Management, noted, “Divorce is not only an emotionally traumatic experience, but it can also be a financially traumatic one, too.” Her colleague Amy Hale added, “Financial confidence doesn’t happen by accident; it’s built through active participation.”

As markets closed Monday, investors were left balancing strong spending headlines against the rising cost of that spending, a resilient labor market against jittery policy expectations, and powerful AI-driven growth stories against a broader appetite for safety. With volatility inching higher and Bitcoin’s slide adding pressure, traders entered December watching closely for clues about whether this week’s events will deepen the market’s cautious tone—or mark a temporary bout of nerves.