US stocks edged lower on Monday as Wall Street kicked off a new month of trading under renewed pressure from technology shares and sharp swings in cryptocurrencies and precious metals.
The S&P 500 was last down 0.3%, moving in tandem with the Nasdaq Composite.
The Dow Jones Industrial Average fell 143 points, or 0.3%, as investors pared exposure to risk assets following a volatile end to last week.
Market sentiment was unsettled by renewed weakness in bitcoin, which dropped below $80,000 for the first time since April.
The move marked another leg lower for cryptocurrencies, which have struggled to regain momentum after a series of macro-driven sell-offs.
Bitcoin later recovered modestly and was last trading above $78,000, helping ease some of the pressure on equity futures.
Crypto and metals selloff reinforces risk-off mood
The slide in digital assets followed dramatic losses in precious metals late last week.
Silver, which had more than doubled over the past 12 months, plunged around 30% on Friday, marking its worst single-day decline since 1980.
Gold also suffered a sharp drop of roughly 9%.
While both metals rebounded slightly on Monday, spot gold and spot silver were still down more than 3% each, reinforcing a broader risk-off tone across global markets.
The synchronized pullback across crypto, metals and equities underscored investors’ caution after months of strong gains in alternative assets.
The easing of losses in bitcoin and metals during Monday’s session helped trim the depth of the equity sell-off, but volatility in these markets remained a focal point for traders.
Heavy earnings and jobs data loom
Despite Monday’s pullback, investors are bracing for a pivotal week packed with corporate earnings and key economic data.
More than 100 S&P 500 companies are scheduled to report results, including heavyweight names such as Amazon and Alphabet.
The earnings season has been broadly strong so far, though markets have reacted unevenly.
Several major companies, including Microsoft, have seen post-earnings sell-offs despite solid headline results, highlighting how sensitive valuations have become.
Deutsche Bank strategists said over the weekend that overall earnings growth remains on track to be the strongest in four years, offering a supportive backdrop for equities if companies can clear high expectations.
On Monday, Disney reported earnings that beat analyst forecasts, providing an early bright spot in what is expected to be a volatile reporting week.
Beyond earnings, investors are also looking ahead to the January US jobs report, due Friday.
Economists surveyed by Dow Jones expect payrolls to have increased by 55,000 last month, a figure that could influence expectations for monetary policy later this year.
Political backdrop adds to uncertainty
Stocks are coming off a losing session on Friday, when major benchmarks fell after President Donald Trump named Kevin Warsh as his nominee for Federal Reserve chair.
If confirmed, Warsh would replace Jerome Powell later this year, adding uncertainty around the future direction of US monetary policy.
Meanwhile, political risks intensified over the weekend as the federal government entered a partial shutdown after Congress failed to pass a funding bill before the deadline.
The Senate approved a package of spending measures, but the legislation also requires approval from the House of Representatives, which was not in session until Monday.
House Speaker Mike Johnson said Sunday that he believes the shutdown could be resolved by Tuesday.
The House is expected to take up the Senate-approved spending package today, after which it would head to President Trump’s desk if passed.
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