IPO market’s red-hot year has been cooled by the shutdown and more caution among investors

A strong year for initial public offerings on Wall Street has fizzled out due to the government shutdown and a cautious turn by investors.

Many IPOs targeted for the end of this year will likely be pushed into next year as the Securities and Exchange Commission works to clear a backlog of hundreds of registration statements. Meanwhile, shares of companies that did make their market debuts haven’t fared well lately amid concerns that stocks have gotten too expensive after another double-digit gain for the market this year.

“A backlogged SEC, the approaching holiday slowdown, and pressure on AI and other tech stocks are all weighing on hopes for a near-term rebound,” wrote Bill Smith, CEO of Renaissance Capital, in a note to investors.

Despite the backlog, Wall Street is still anticipatin