Wall Street ended Monday's session sharply lower, with the Dow Jones Industrial Average falling 370 points, as a combination of geopolitical and monetary-policy concerns weighed on investor sentiment.

Three major factors drove the sell-off, according to CNBC-TV18:

1. US–Iran tensions flare up. A fresh escalation in tensions between the United States and Iran unsettled global markets. Heightened conflict risk in the Middle East typically raises concerns about disruptions to energy supply routes, keeping traders cautious. The Strait of Hormuz, which lies between Iran and Oman, is one of the world's most important oil-shipping chokepoints, and past episodes of US–Iran escalation — such as the events of 2019–2020 — have repeatedly triggered risk-off moves across global equities and energy markets.

2. The knock-on effect on bond yields and crude oil prices. The geopolitical flare-up fed through into US bond markets and the oil market. Rising Treasury yields make equities less attractive by comparison, while higher crude oil prices add to inflationary pressures — both headwinds for stocks. Yields on the US 10-year Treasury note are closely watched as a benchmark influencing borrowing costs across the economy, from corporate borrowing to mortgage rates.

3. Fear of a Federal Reserve rate hike this month. Investors were also bracing for the possibility that the US Federal Reserve could raise interest rates at its upcoming policy meeting. Rate increases by the Fed tighten financial conditions and are historically associated with pressure on equity valuations. Markets pay close attention to the Fed's policy decisions and accompanying statements for signals about the future path of rates, and uncertainty heading into a meeting often amplifies volatility.

The combination of these factors kept sentiment subdued across Wall Street on Monday, dragging down the major indices, including the Dow Jones, the S&P 500, and the Nasdaq Composite.

The Dow Jones Industrial Average is a price-weighted index of 30 major US blue-chip companies, while the S&P 500 tracks 500 large-cap American firms and the Nasdaq Composite is heavily weighted toward technology stocks. All three are widely followed barometers of US equity-market performance. Looking ahead, investors will be watching the Fed's policy decision, movements in Treasury yields and oil prices, and any further developments in US–Iran relations for signs of whether the pressure on equities eases or persists.