Tech Sell-Off Sparks Investor Anxiety Amid Trump's Policy Moves

U.S. investors are closely monitoring upcoming jobs data following a tech sell-off that has fueled inflationary concerns linked to President Trump's policies. The January nonfarm payrolls report is key to gauging the labor market's durability amid high borrowing costs, with the Federal Reserve leaving rates unchanged while citing economic strength.

Amid concerns of economic overheating, U.S. investors are watching next week's jobs data closely, following a significant tech sell-off that has intensified inflationary worries linked to President Trump's policies. The nonfarm payrolls report for January is expected to signal the labor market's resilience in the face of high borrowing costs.

The Federal Reserve's decision to leave interest rates unchanged reflects a strong economy, although inflation remains above its 2% target. Investors are cautious about potential economic overheating and its impact on technology stocks, especially considering fears driven by Chinese startup DeepSeek's cost-effective AI model, which threatened U.S. tech giants with overvaluation.

With quarterly results from major tech companies like Alphabet and Amazon on the horizon, market participants remain on edge. Uncertainty under Trump's administration, including looming trade tariffs, exacerbates this tension, amplifying the focus on upcoming economic data.

(With inputs from agencies.)