Markets Await US Jobs Report Following Steep Tech-Led S&P 500 Sell-Off

Financial markets are bracing for Friday's crucial U.S. employment report amid pronounced volatility and broad risk-off sentiment. The labor market release follows a sharp drop in equities, with the S&P 500 falling 4.4% and the Nasdaq 100 sliding 6.4% in the previous session amid an unwind in AI and technology shares. Nonfarm payrolls are forecast to increase by 65,000, up from 29,000 in the prior month, though Danske Bank expects growth of +70k. Consensus projects unemployment to remain unchanged at 4.2%, with Danske Bank forecasting 4.1%. Investors are also tracking consumer sentiment and speeches from Federal Reserve officials.