Tech stocks declined on Monday as hopes for a breakthrough in the Middle East situation diminished, coupled with rising concerns about inflation, which dampened market sentiment.

At 11:33 a.m. New York time, the Nasdaq 100 index fell by 1.3%, and this index, which is dominated by technology stocks, is set to reverse the gains from the previous two trading days. The S&P 500 index also fell by 0.9%.

"The three-headed monster is scaring the market today," said David Waddell, Chief Investment Strategist at Coastal Bridge Advisors, during an interview regarding the decline in the two major stock indices. "Those are rising interest rates, rising oil prices, and a strengthening US dollar. With all three of these variables on the rise, it's very difficult for the market to go up."

There seems to be a significant disagreement between Iran and the United States regarding reaching a new ceasefire agreement and reopening the Strait of Hormuz. Tehran insists on its previous proposal, which was rejected by U.S. President Donald Trump. Despite one of Saudi Arabia's key oil pipelines having resumed oil exports, Brent crude still rose slightly to $108 per barrel.