US Stocks Plummet as Oil Prices Soar Amidst Escalating Iran Tensions

The US stock market opened Monday's trading session in red, with the Dow Jones down 0.64%, the Nasdaq Composite at 26,315.97 and losing 0.33%, and the S&P 500 falling by 0.43%. The decline was attributed to rising tensions between the US and Iran in the Strait of Hormuz.

The geopolitical risks sent oil prices soaring, with Brent crude moving above $90 a barrel and WTI trading above $86. This surge in energy costs could revive inflation worries just as investors are trying to assess the Federal Reserve's next move. The market is now pricing in almost 60% probability of an interest rate hike in September.

Nvidia continued its strong performance, with its stock price rising by $1.40 or 0.64%. Other semiconductor and AI-related shares also performed well, but growth stocks were adversely affected by the increased interest rate expectations.