Wall Street Slips as Valuation Concerns Rise and Data Fog Deepens

U.S. equities ended Monday in the red as renewed worries over stretched valuations and the continued absence of official economic data weighed on investor sentiment. With the federal government shutdown still blocking key releases — including inflation, retail sales, and labour-market figures — traders were left navigating markets with limited visibility, amplifying caution across risk assets.

Tech and growth stocks led the decline, reversing part of last week’s gains as rising Treasury yields pressured high-multiple names. Investors also digested a series of downbeat corporate updates, particularly in consumer and software sectors, where executives flagged softer demand and persistent margin pressures.

The broader market mood was further dampened by uncertainty around Federal Reserve policy. Without fresh data, markets remain split between expectations of a delayed rate-cut cycle and concerns that the Fed may be unable to make informed decisions at upcoming meetings. This policy ambiguity has kept volatility elevated and contributed to a defensive tone in equities.

Sectors tied to economic resilience — such as healthcare, utilities, and select financials — held up relatively better, though the overall bias remained negative.

For traders, Monday’s pullback highlights the market’s sensitivity to valuation risks and the challenges posed by the ongoing “data blackout.” Until the shutdown ends and official metrics resume, price action may continue to be heavily sentiment-driven, with abrupt swings likely around Fed communication and corporate commentary.