AWS EC2 userdata WGET via link-local address times out

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AWS EC2 instance uses the link-local address (169.254.169.254) in order to distribute user-data. So, I booted a Linux instance to experiment the same with some initial network setup scripts to get the data. Following is the setup before I requested to pull the information.

iptable: 
Chain INPUT (policy ACCEPT)
target prot opt source destination 
Chain FORWARD (policy ACCEPT)
target prot opt source destination 
Chain OUTPUT (policy ACCEPT) 
target prot opt source destination 

eth0: <BROADCAST,MULTICAST,UP,LOWER_UP> mtu 1500 qdisc pfifo_fast state UP group default qlen 1000
link/ether 06:43:0f:bf:cd:6c brd ff:ff:ff:ff:ff:ff
inet 169.254.169.15/16 brd 169.254.255.255 scope global eth0
 valid_lft forever preferred_lft forever 
inet6 fe80::443:fff:febf:cd6c/64 scope link 
 valid_lft forever preferred_lft forever 

route
169.254.0.0/16 dev eth0 proto kernel scope link src 169.254.169.15

Requested: wget http://169.254.169.254 REQUEST TIME OUT

tcpdump 
00:00:00.000000 ARP, Request who-has 169.254.169.254 tell 169.254.169.15, length 28
00:00:00.000115 ARP, Reply 169.254.169.254 is-at <MAC REMOVED>, length 42
00:00:00.000119 IP 169.254.169.15.60712 > 169.254.169.254.80: Flags [S], seq 2929127779, win 29200, options [mss 1460,sackOK,TS val 2525905560 ecr 0,nop,wscale 7], length 0 
00:00:01.048018 IP 169.254.169.15.60712 > 169.254.169.254.80: Flags [S], seq 2929127779, win 29200, options [mss 1460,sackOK,TS val 2525906608 ecr 0,nop,wscale 7], length 0 
00:00:03.096020 IP 169.254.169.15.60712 > 169.254.169.254.80: Flags [S], seq 2929127779, win 29200, options [mss 1460,sackOK,TS val 2525908656 ecr 0,nop,wscale 7], length 0 
00:00:07.128021 IP 169.254.169.15.60712 > 169.254.169.254.80: Flags [S], seq 2929127779, win 29200, options [mss 1460,sackOK,TS val 2525912688 ecr 0,nop,wscale 7], length 0 
00:00:15.192051 IP 169.254.169.15.60712 > 169.254.169.254.80: Flags [S], seq 2929127779, win 29200, options [mss 1460,sackOK,TS val 2525920752 ecr 0,nop,wscale 7], length 0 
00:00:31.576027 IP 169.254.169.15.60712 > 169.254.169.254.80: Flags [S], seq 2929127779, win 29200, options [mss 1460,sackOK,TS val 2525937136 ecr 0,nop,wscale 7], length 0 
00:00:36.696009 ARP, Request who-has 169.254.169.254 tell 169.254.169.15, length 28 
00:00:36.696189 ARP, Reply 169.254.169.254 is-at <MAC REMOVED>, length 42 
00:01:03.832035 IP 169.254.169.15.60712 > 169.254.169.254.80: Flags [S], seq 2929127779, win 29200, options [mss 1460,sackOK,TS val 2525969392 ecr 0,nop,wscale 7], length 0 
00:01:08.952026 ARP, Request who-has 169.254.169.254 tell 169.254.169.15, length 28 
00:01:08.952182 ARP, Reply 169.254.169.254 is-at <MAC REMOVED>, length 42

Something is blocking Acknowledgement packets. What am I missing? Please advise!

If you need any other information, please let me know!

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