US equity markets closed lower on Thursday, with the Dow Jones Industrial Average falling 0.85% and the S&P 500 sliding as investors adopted a cautious stance ahead of Friday's nonfarm payrolls report.
The broad pullback was driven by weakness in the technology sector, particularly among software stocks, which faced selling pressure following mixed earnings results from key names including AppLovin and Datadog.
The decline in software shares weighed heavily on the Nasdaq, as investors digested the latest corporate guidance and revenue figures.
AppLovin and Datadog, both significant constituents in the tech-heavy index, saw their shares retreat, dragging down the broader sector performance.
This sector-specific weakness compounded the general risk-off sentiment that has characterized recent trading sessions.
Geopolitical uncertainty continued to underpin market caution.