S&P 500 drops 1.18% and Nasdaq slides 1.59% at opening bell

US markets opened in the red on Monday as investors reacted to mounting geopolitical stress and renewed uncertainty across global financial markets.

Selling pressure was visible right from the opening bell. Traders moved quickly to reduce exposure. Risk appetite weakened within minutes.

S&P 500 drops over 1 percent at open

The S&P 500 fell 81.28 points, or 1.18 percent, to 6,797.60 shortly after the market opened. The decline reflects broad based weakness across sectors.

Large cap stocks led the drop. Defensive sectors showed relative resilience, but they were not immune. Energy and defense names saw mixed movement as oil volatility added to uncertainty.

Investors appear cautious ahead of potential policy shifts and escalating tensions in the Middle East. Global headlines continue to shape intraday sentiment.

Nasdaq falls nearly 1.6 percent as tech stocks slide

The Nasdaq dropped 360.24 points, or 1.59 percent, to 22,307.98 in early trading. Technology stocks bore the brunt of the selloff.

High growth names tend to react sharply during risk off sessions. Rising bond yields and geopolitical instability often pressure tech valuations. Traders rotated capital into safer assets as volatility picked up.

Chipmakers, AI linked stocks, and mega cap tech companies all saw early weakness. The tech heavy index underperformed the broader market in the opening minutes.

Wall Street is currently balancing several major risks. Ongoing Middle East tensions. Oil price swings. Questions about central bank policy. And shifting global alliances.

Investors are watching for any escalation that could disrupt energy supply or global trade routes. At the same time, economic data releases later this week may influence expectations around interest rates.

For now, the tone is defensive. Market participants are prioritizing capital preservation over aggressive positioning.

If volatility continues, traders may expect wider daily swings in both directions. The opening drop suggests that sentiment remains fragile and highly sensitive to headlines.