Nasdaq Drops Over 100 Points, But Market Volatility Decreases

US stocks started the week on a lower note on concerns that China could resume stricter restrictions to fight the covid-19 pandemic.

Beijing has warned it was facing its most severe test of COVID as it tightened rules for entering the city, reported Reuters.

Shares of US casino operators having their businesses in China including Las Vegas Sands Corp. LVS, Wynn Resorts, Limited WYNN and MGM Resorts International MGM all dropped at least 2% on Monday.

Major sectors on the S&P 500 closed on a mixed note, with consumer staples and real estate stocks recording the biggest surge on Monday. However, consumer discretionary and energy stocks traded lower in the previous session.

The Nasdaq 100 fell 1.06% to close at 11,553.45 on Monday, amid a drop in shares of Amazon.com, Inc. AMZN and Apple Inc AAPL. The S&P 500 fell 0.39%, while the Dow Jones dropped around 45 points to settle at 33,700.28 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) fell 2.5% to 22.54 points.

What is CBOE Volatility Index?

The CBOE Volatility Index, popularly known as VIX, is a measure of the equity market's expectation of volatility based on S&P 500 index call and put options.