The Nasdaq 100 Index tumbled on Tuesday — on track for its worst day in two weeks — with traders bracing for interest-rate hikes as renewed Middle East tensions lifted oil prices and bond yields, stoking inflation fears. The technology-heavy benchmark dropped 1.3% as of 9:52 a.m. in New York. The S&P 500 Index was down 0.7% after finishing August on a downbeat note, as stocks fell Monday and the price of oil rose after the US launched its first military action in about a month against Iran.

An exchange-traded fund tracking chip names declined 2%.