Wall Street's Uncertain Dance Amid Government Shutdown

U.S. stocks fell as the government shutdown deprived investors of crucial economic data. The New York Fed's consumer expectations survey revealed increasing inflation projections, impacting investor decision-making. Sectors sensitive to economic fluctuations, like housing and transport, underperformed amid these conditions, reflecting the broader market's cautious stance.

U.S. stocks took a dive on Tuesday, as investors faced a dearth of economic data due to a government shutdown. This left them searching for clues from secondary sources and Federal Reserve officials' remarks.

Adding to the uncertainty, the New York Federal Reserve's consumer expectations survey highlighted rising inflation predictions. As a result, major indexes ended in negative territory, with the S&P 500 and Nasdaq Composite experiencing notable declines.

Without official data to guide them, market participants turned to secondary indicators, leading to cautious trading. Economically sensitive sectors, including housing and transport, underperformed amid the tightening economic backdrop.

(With inputs from agencies.)