Stock Futures Drop as Precious Metals Sell-Off Hits Bitcoin

US stock futures fell Sunday evening, dragging bitcoin down with them, right after a heavy sell-off in gold and silver wrapped up a bumpy first month of 2026. The drop came on the heels of Friday's trading, where precious metals took a big hit, and now that pressure looks to be spreading to stocks and crypto.

Background

Markets kicked off 2026 on shaky ground after a strong 2025. The S&P 500 ended last year with a 17.9% gain, helped by solid bond returns and a push from AI stocks. But that strength hid narrow leadership, with tech giants carrying most of the load. International markets and emerging ones did better than US stocks in spots, and all S&P sectors posted gains for the year. Precious metals like gold and silver soared through 2025, drawing investor cash amid tariff worries and Fed rate cuts.

January brought fresh trouble. A US government shutdown earlier delayed key data like retail sales and industrial production, leaving traders guessing on the economy. The shutdown ended, but reports trickled out late. GDP grew at 4.3% annualized in Q3, beating forecasts, yet jobs data stayed mixed. The Fed cut rates three times in 2025 and another in December, with Chair Jerome Powell noting a higher bar for more moves. Inflation cooled a bit, but tariffs kept it above 2%.

Corporate profits held up despite higher costs hitting lower-income families. Tech kept leading, but sectors like health care, industrials, and utilities showed gains in Q4 2025. Then came January's volatility. Geopolitical tensions over Greenland spiked the VIX above 20 one week. Stocks dipped, with S&P 500 down 0.3%, Nasdaq up slightly, and Dow off 0.5%. Retail traders jumped in on dips, hitting $4 billion in volume one day.

Precious metals had ruled 2025 as a safe bet, but Friday saw them crater. Gold and silver dumped hard, capping January's losses. That move echoed into Sunday's futures, where S&P 500 contracts slid, Dow futures dropped, and Nasdaq futures followed. Bitcoin, often tied to risk sentiment, tumbled alongside.

Key Details

Sunday's futures opened lower across the board. S&P 500 futures fell about 0.8% by late evening, Dow futures shed 0.6%, and Nasdaq futures dropped 1.1%. Bitcoin traded under $90,000, down over 3% from Friday close, after riding high on AI hype and rate cut hopes.

Friday's precious metals rout set the tone. Gold plunged 4.2% to its lowest since mid-2025, silver fell 5.1%. Traders pointed to profit-taking after a long run-up, plus dollar strength from mixed Fed signals. The sell-off erased January gains for metals, which had climbed 15% through the month before.

January overall was rough. Stocks swung with news: early rallies on rate cut bets, then pullbacks on inflation data and geopolitics. Tech stocks like Intel tanked 17% on weak AI chip outlook. Tesla gained on Elon Musk's Davos talk of self-driving approvals abroad. The Magnificent Seven split, with some prepping earnings.

Broader context showed cracks. Q4 2025 sectors varied: health care up 11%, tech flat, utilities and real estate down. Delayed government data fueled uncertainty—retail sales guessed up 0.3%, industrial output up 0.2% in November. Fed minutes stressed labor market wobbles.

Trader Reactions

Floor traders in New York watched futures tick red Sunday. One veteran said the metals drop felt like a warning.

"Gold and silver led the way down Friday, and now it's spilling over—stocks and bitcoin can't shake it off. January was wild with shutdown delays, and this feels like the hangover starting."

— Mark Reilly, 25-year floor trader at NYSE

Retail flows stayed strong, with dip-buyers active. Pacific markets mixed: Japan up big in Q4, Korea soared yearly.

What This Means

The futures drop signals caution heading into the new week. If precious metals keep falling, it could pull more assets lower, testing the bull market's legs after three strong years. Investors eye Fed moves—a dovish tilt and AI rally might prop stocks, but high valuations and election noise add risk.

Bitcoin's link to stocks grows tighter; its drop mirrors futures pain, hinting at risk-off mood. Delayed data means patchy economic reads—retail sales, housing starts still pending. That keeps traders on edge for inflation clues.

Consumer spending holds key. Wealthy households rode home and stock gains, but tariffs squeezed others. Corporate nimbleness showed in 2025 profits, yet AI build-out demands power, boosting utilities. Value stocks edged growth late last year.

Midterms loom, Japan reforms attract cash, emerging markets rise on weak dollar. Bonds could shine with more cuts and a new Fed chair possible in May. Volatility like VIX spikes tests nerves, but dip-buying persists.

Earnings from Microsoft, Meta, Tesla, Apple this week could sway tech. Greenland tensions simmer. For now, Sunday's slide ties back to metals' tumble, marking January 2026 as one to watch. Markets close Monday with fresh data due.