Nasdaq Crashes as Oil Prices Surge, Inflation Fears Mount

The US stock market began September on a sour note as investors grew anxious about inflation, rising government debt, and the ongoing conflict in Iran. The Nasdaq composite led the decline, falling over 1% as technology stocks like Nvidia and Micron Technology took a hit.

The sell-off was fueled by higher oil prices, with Brent crude up 2% to $92.33 a barrel. Energy costs remain elevated due to the Strait of Hormuz shutdown, which affects about 20% of the world's oil shipments.

Concerns over inflation have been persistent, with the Federal Reserve targeting a rate of 2%. However, inflation remains above 3%, making it increasingly likely that interest rates could rise before year-end.