The S&P/ASX 200 dropped 0.8% to around 8,745 on Thursday, extending losses to a two-week low as investors turned cautious ahead of a crucial jobs report that could guide the RBA’s policy outlook. Australia’s August jobs report is expected to show 22K new positions, with the unemployment rate steady at 4.2% and participation unchanged at 67%. Markets see the central bank taking a cautious approach to easing at its September 29–30 meeting, with swaps showing minimal odds of a September cut and November bets trimmed to 70%. Meanwhile, the US Federal Reserve cut rates as expected on Wednesday, but sentiment stayed muted as investors digested updated economic projections. Chair Powell called it a ‘risk management cut,’ with the dot plot signaling two more cuts this year. Back in Sydney, energy stocks led the decline, slipping 5.4% to their lowest since June 13, with Santos plunging 13.6% after ADNOC withdrew its $18.7B bid, while Woodside dropped 4.6% as weaker oil prices added pressure.