Stocks Slide at Year-End Close as Volatility Rises; Gold Suffers Sharp Selloff

Why Most Investors Sell at the Worst Possible Time 👇

U.S. stocks finished sharply lower Monday, closing out a late-December session marked by broad selling pressure, rising volatility, and steep losses in gold, as investors trimmed risk heading into the final days of the year.

The Dow Jones Industrial Average fell 249.04 points, or 0.51%, to 48,461.9, while the S&P 500 declined 24.20 points, or 0.35%, ending at 6,905.74. The technology-heavy Nasdaq Composite slid 118.75 points, or 0.50%, to 23,474.4. Small-cap stocks underperformed, with the Russell 2000 dropping 0.61% to 249.88.

Losses accelerated in the afternoon, pushing all four major benchmarks firmly into the red by the closing bell. Market participants showed little appetite for adding exposure, a pattern often seen in thin year-end trading when liquidity declines and positioning takes priority over new risk.

Volatility moved higher alongside the equity selloff. The CBOE Volatility Index, known as the VIX, rose 3.90% to 14.13, signaling increased demand for downside protection even as index declines remained orderly. The VIX finished well above its session lows, reflecting a defensive tone into the close.

In commodities, energy prices advanced while precious metals came under heavy pressure. WTI crude oil futures for February delivery rose 1.90% to $57.82 a barrel, extending gains from earlier in the session. Oil’s strength stood out as one of the few pockets of positive momentum across major asset classes.

Gold prices, by contrast, suffered a sharp selloff. February gold futures fell $202.50, or 4.45%, to $4,350.20, marking one of the metal’s steepest single-session declines in recent weeks. The move left gold near the low end of its intraday range by the close.

Cryptocurrencies also finished lower. Bitcoin slipped 0.29% to $87,176.77, remaining under pressure after earlier losses and reflecting continued sensitivity to broader risk sentiment.

With no major economic releases reflected in today’s data and markets approaching year-end, Monday’s session underscored a cautious backdrop. Rising volatility, weakness across equities and gold, and selective strength in energy pointed to investors prioritizing capital preservation as the calendar year draws to a close.