Economic Jitters: Tech Sell-Off Sparks Market Uncertainty

U.S. investors are closely monitoring upcoming jobs data for signs of economic resilience amidst a tech sell-off and inflation fears fueled by President Trump's policies. Despite a solid labor market, concerns around economic overheating persist, amplified by uncertainty surrounding trade and immigration policies.

U.S. investors, shaken by a recent sharp sell-off in the tech sector, are keenly awaiting jobs data that may indicate ongoing economic resilience. This data holds significant weight, especially amidst inflation worries heightened by President Trump's policies.

The January nonfarm payrolls report, due next week, acts as a critical indicator of the labor market's strength despite elevated borrowing costs. On Wednesday, the Federal Reserve maintained interest rates, pointing to a strong economy and inflation above its target.

Stock markets, struggling with recent volatility, remain alert for signs of economic overheating. These market jitters are tied to diverse data points, such as news on AI, mixed earnings from tech giants, and U.S. economic policies, leaving investors uncertain about future trends.

(With inputs from agencies.)