Tuesday Briefing: Stocks tumble around the world

Plus, Japan's migrant workers.

View in browser|nytimes.com August 6, 2024 By Natasha Frost Good morning. We're covering a fall in stock markets globally, and diplomatic efforts to contain the war in the Middle East. Plus: Kamala Harris's search for a running mate. The U.S. stock market saw its biggest daily decline in nearly two years.  Ava Pellor for The New York Times Stocks tumbled over fears of a U.S. economic slowdown A wave of anxiety rippled through financial markets yesterday, and stocks fell around the world as investors zeroed in on signs of a slowing American economy. The drop extended a sell-off that began on Friday after the U.S. released a job report that showed the highest level of unemployment in nearly three years. That deepened fears that the world's largest economy could be headed for slower growth. There were other factors at play in the plunge: concerns that tech stocks had run up too far, too fast, and that a strengthening yen could hurt the prospects of Japanese companies and some global traders. In the U.S., some questioned whether the Federal Reserve might have waited too long to cut interest rates. Here's the latest on the market meltdown. By the numbers: In the U.S., the S&P 500 fell 3 percent, its worst day since September 2022. In Japan, the Nikkei 225 index dropped 12.4 percent, its biggest one-day point decline. The FTSE 100, Britain's benchmark index, had its worst day since July 2023, falling just over 2 percent. Time to sell? It's tough to do nothing during this kind of market turmoil. But in this case, it's your best option, Ron Lieber, our columnist, writes. Supporters of Hamas and Hezbollah in Saida, Lebanon, last week. Diego Ibarra Sanchez for The New York Times A scramble to avoid wider war in the Middle East Diplomats across the Middle East are working to contain escalating tensions between Israel and Iran as fears of a widening conflict grow in the region after Iran vowed revenge for the killing of a senior Hamas leader, Ismail Haniyeh, on its soil. The U.S. defense secretary, Lloyd Austin, has ordered more combat aircraft and missile-shooting warships to the Middle East in response to threats to Israel from Iran and its proxies, and President Biden convened his national security team to discuss developments in the region and spoke with King Abdullah II of Jordan, according to a White House statement. Foreign ministers from Islamic countries are to gather in Saudi Arabia tomorrow for an "extraordinary" meeting of the Organization of Islamic Cooperation that was called to discuss "the continued crimes of the Israeli occupation against the Palestinian people," including Haniyeh's killing, the organization said in a statement. Quotable: "We must be prepared for anything — including a swift transition to offense," said Yoav Gallant, Israel's defense minister. In Lebanon: Hezbollah and Israel continued to trade cross-border fire, with an Israeli airstrike killing two people in southern Lebanon, according to Lebanon's Ministry of Health. In Israel: A quarrel between Biden and Prime Minister Benjamin Netanyahu over Israel's approach to cease-fire talks mirrors growing domestic tensions. 🇺🇸 2024 The presidential election is less than 100 days away. Here's the latest from the campaign trail. Kamala Harris spent the weekend interviewing contenders to be her running mate. Erin Schaff/The New York Times Harris is poised to announce her running mate The campaign to be Kamala Harris's running mate is reaching its last hours. The final stage has reached something of an ugly phase, sowing divisions within the party as donors, interest groups and political rivals lobby for their preferred candidates. Three contenders — Gov. Josh Shapiro of Pennsylvania, Senator Mark Kelly of Arizona and Gov. Tim Walz of Minnesota — met with the vice president in Washington on Sunday. After announcing her pick, Harris plans to hold a first rally with her new running mate in Philadelphia today. Here's what else to know: The elevation of Harris to the top of the Democratic ticket has transformed what had been a long slog into a fast-moving campaign. Analysts said that the timeline was likely to benefit Harris. In a live interview with Adin Ross, a 23-year-old internet streamer, Donald Trump appeared to blame immigrants for the drop in global stock markets. In a new book, Nancy Pelosi, the former speaker, said that her push for President Biden to withdraw had come down to one factor: the need to defeat Donald Trump. Do you have questions about the election? Send them to us and we'll find the answers. Stay up-to-date: Live coverage | Poll tracker | The "Run-Up" podcast | On Politics newsletter MORE TOP NEWS Henry Nicholls/Agence France-Presse — Getty Images Britain: Violent far-right riots have been the new Labour government's first major challenge, even as its strong law-and-order approach has mostly spared it from criticism. Antitrust: Google acted illegally to maintain a monopoly in online search, a U.S. judge ruled, a decision that may alter the way big tech companies do business. Read the ruling. Bangladesh: Crowds celebrated in the streets of Dhaka, the capital, after Prime Minister Sheikh Hasina resigned and fled the country. Myanmar: Rebel fighters said they had seized a military base near the border with China in what would be a significant victory against the ruling junta. Niger: The U.S. military turned over control of its last base to Nigerien forces, even as violent extremism continues to rise in the Sahel region. U.S.: Tropical Storm Debby battered Florida, leaving at least four people dead. Millions of people were under flash flood alerts. South Korea: Some companies are asking executives to work six days a week, worrying some in a country already used to working long hours. Tech: X plans to shut its San Francisco office. Elon Musk has said he wants to move the company's headquarters to Texas. Culture: David Lynch, the director of "Mulholland Drive" and "Blue Velvet," said that he had emphysema but that he would not retire. Olympic Games Chang W. Lee/The New York Times Gymnastics: Simone Biles came away with a silver from the women's floor exercise final, the last gymnastics event of the Games. Rebeca Andrade won gold on the floor. Basketball: LeBron James is the sport's global ambassador. At the Olympics, he is playing in front of — and against — people who grew up dreaming of seeing him in person. Pole vaulting: Breaking down the biomechanics that propel Mondo Duplantis, the Italian world champion, to victory. Boxing: Two Olympians whose eligibility to compete as women has come under scrutiny will fight for medals today. For more: Catch up with the latest results from Day 10, and see our photographers' best images from the Summer Games. SPORTS NEWS Soccer: West Ham United has completed the signing of Borussia Dortmund striker Niclas Fullkrug. Baseball: Can the Chicago White Sox avoid setting the record for the longest losing streak? N.F.L.: Why assistant coach Megan Rosburg is "the real deal" for the Ravens. MORNING READ Noriko Hayashi for The New York Times Japan desperately needs foreign workers to fill jobs left open by a declining and aging population. But even as these employees become much more visible, they are treated with ambivalence — and the pathways for them to stay indefinitely are few and narrow. CONVERSATION STARTERS Speaking out: The dissident Ilya Yashin called his release in a prisoner swap an "illegal expulsion" from Russia. This is why he wanted to stay. Art vs. activism: As the literary world spars over politics and war, are we losing sight of the writer's purpose? New York City: Eighth Avenue is a thoroughfare for tourists and a hub for Broadway shows. It's also trash-strewn chaos. The world's favorite scent: Whether it's in custard or candles, we live in a world suffused with vanilla. The plant that produces it is in danger, Aimee Nezhukumatathil writes in our Opinion section. ARTS AND IDEAS Will Sanders 'Spirited Away,' onstage The stage version of Hayao Miyazaki's classic film "Spirited Away," now showing at the London Coliseum theater, has 65 puppeteered elements in all, including dynamic particles of soot and a menacing bird with wings of piano wire and sheet nylon. It took about four years and three months for around 70 people, including 30 performers, to put on this show. Sometimes a single work requires a small army. Take a look at the teams behind four other outsize projects — including the 50 people who make a potato pizza happen. We hope you've enjoyed this newsletter, which is made possible through subscriber support. Subscribe to The New York Times. RECOMMENDATIONS Linda Xiao for The New York Times Cook: A pure chicken meatball may lack moisture. Adding zucchini solves that problem. Watch: Here are some questions on our minds after the season 2 finale of "House of the Dragon." Read: In "Black Pill," the journalist Elle Reeve finds that the once-fringe alt-right is dead — because it's now mainstream. Debunk: Influencers sometimes misstate how stress hormones affect appearance. Here's some clarity. Play the Spelling Bee. And here are today's Mini Crossword and Wordle. You can find all our puzzles here. That's it for today's briefing. See you tomorrow. — Natasha Reach Natasha and the team at briefing@nytimes.com. Need help? Review our newsletter help page or contact us for assistance. You received this email because you signed up for Morning Briefing: Europe Edition from The New York Times. To stop receiving Morning Briefing: Europe Edition, unsubscribe. To opt out of other promotional emails from The Times, including those regarding The Athletic, manage your email settings. To opt out of updates and offers sent from The Athletic, submit a request. 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