By 
Growth stocks have suffered some of the steepest declines in Monday’s selloff, with the information-technology, communication-services and consumer-discretionary sectors being among the hardest hit in the S&P 500 Index
SPX,
-2.14%
in afternoon trading.
Among exchange-traded funds, the Technology Select Sector SPDR Fund
XLK,
-2.76%
was down 2.8%, while the Communication Services Select Sector SPDR Fund
XLC,
-2.84%
tumbled 2.9% and the Consumer Discretionary Select Sector SPDR Fund
XLY,
-2.72%
dropped 2.8%, according to FactSet data, at last check.
Investors are reconsidering stock-market valuations after a big rally earlier this summer. Growth stocks are suffering more than value stocks in Monday’s slump, after outperforming so far in the third quarter.
The iShares Russell 1000 Growth ETF
IWF,
-2.33%
was sliding around 2.4% Monday afternoon, while the iShares Russell 1000 Value ETF
IWD,
-1.85%
shed 1.9%, FactSet data show, at last check.
The U.S. stock market has kicked off this week extending last week’s declines, as investors look ahead to Federal Reserve Chair Jerome Powell’s speech in Jackson Hole, Wyo. on Friday for clues on the path of the Fed’s monetary tightening policy.
Tech and other growth stocks had been particularly battered during the first half of this year as investors anticipated interest-rate hikes by the Fed in an effort to combat soaring inflation. But growth stocks saw a big rebound over the summer, as the market began to expect the Fed could become less aggressive in tightening its policy amid signs that U.S. inflation was easing.
The S&P 500 was down 2.1% Monday afternoon, while the tech-heavy Nasdaq Composite
COMP,
-2.55%
dropped 2.5% and the Dow Jones Industrial Average
DJIA,
-1.91%
fell 1.9%, according to FactSet data, at last check. The 10-year Treasury rate
TMUBMUSD10Y,
3.034%
also was back above 3% Monday, which often can weigh on the outlook for growth stocks.
See: Bond market warns of more pain for stocks as the 10-year yield tops 3%
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