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Dow drops 864 points, and Japanese stocks suffer worst crash since 1987 amid U.S. economy worries

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Dow drops 864 points, and Japanese stocks suffer worst crash since 1987 amid U.S. economy worries

NEW YORK (AP) — Nearly everything on Wall Street is tumbling Monday as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world.

The S&P 500 was down by 2.4% in afternoon trading. The Dow Jones Industrial Average was reeling by 864 points, or 2.2%, as of 1:25 p.m. Eastern time, and the Nasdaq composite slid 2.8%.

The drops were just the latest in a global sell-off that began last week. Japan’s Nikkei 225 helped start Monday by plunging 12.4% for its worst day since the Black Monday crash of 1987.

It was the first chance for traders in Tokyo to react to Friday’s report showing U.S. employers slowed their hiring last month by much more than economists expected. That was the latest piece of data on the U.S. economy to come in weaker than expected, and it’s all raised fear the Federal Reserve has pressed the brakes on the U.S. economy by too much for too long through high interest rates in hopes of stifling inflation.

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Professional investors cautioned that some technical factors could be amplifying the action in markets, but the losses were still neck-snapping. South Korea’s Kospi index careened 8.8% lower, stock markets across Europe sank more than 1% and bitcoin dropped below $55,000 from more than $61,000 on Friday.

Even gold, which has a reputation for offering safety during tumultuous times, slipped 1%.

That’s in part because traders began wondering if the damage has been so severe that the Federal Reserve will have to cut interest rates in an emergency meeting, before its next scheduled decision on Sept. 18. The yield on the two-year Treasury, which closely tracks expectations for the Fed, briefly sank below 3.70% during the morning from 3.88% late Friday and from 5% in April. It later recovered and pulled back to 3.93%.

“The Fed could ride in on a white horse to save the day with a big rate cut, but the case for an inter-meeting cut seems flimsy,” said Brian Jacobsen, chief economist at Annex Wealth Management. “Those are usually reserved for emergencies, like COVID, and an unemployment rate of 4.3% doesn’t really seem like an emergency.”

The U.S. economy is still growing, and a recession is far from a certainty. The Fed has been clear about the tightrope it began walking when it started hiking rates sharply in March 2022: Being too aggressive would choke the economy, but going too soft would give inflation more oxygen and hurt everyone.

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Goldman Sachs economist David Mericle sees a higher chance of a recession within the next 12 months following Friday’s jobs report. But he still sees only a 25% probability of that, up from 15%, in part “because the data look fine overall” and he does not “see major financial imbalances.”

Some of Wall Street’s recent declines may also simply be air coming out of a stock market that romped to dozens of all-time highs this year, in part on a frenzy around artificial-intelligence technology and hopes for coming cuts to interest rates. Critics have been saying for a while that the stock market looked expensive after prices rose faster than corporate profits.

“Markets tend to move higher like they’re climbing stairs, and they go down like they’re falling out a window,” according to JJ Kinahan, CEO of IG North America. He chalks much of the recent worries to euphoria around AI subsiding and “a market that was ahead of itself.”

Professional investors also pointed to the Bank of Japan’s move last week to raise its main interest rate from nearly zero. Such a move helps boost the value of the Japanese yen, but it could also force traders to scramble out of deals where they borrowed money for virtually no cost in Japan and invested it elsewhere around the world.

U.S. stocks pared their losses Monday after a report said growth for U.S. services businesses was a touch stronger than expected. Growth was led by businesses in the arts, entertainment and recreation businesses, along with accommodations and food services, according to the Institute for Supply Management. Treasury yields also pared their drops following the better-than-expected data.

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Still, stocks of companies whose profits are most closely tied to the economy’s strength took sharp losses on the fears about a slowdown. The small companies in the Russell 2000 index dropped 2.8%, further dousing what had been a revival for it and other beaten-down areas of the market.

Making things worse for Wall Street, Big Tech stocks also tumbled as the market’s most popular trade for much of this year continued to unravel. Apple, Nvidia and a handful of other Big Tech stocks known as the “ Magnificent Seven ” had propelled the S&P 500 to records this year, even as high interest rates weighed down much of the rest of the stock market.

But Big Tech’s momentum turned last month on worries investors had taken their prices too high and expectations for future growth are becoming too difficult to meet. A set of underwhelming profit reports that began with updates from Tesla and Alphabet added to the pessimism and accelerated the declines.

Apple fell 3.9% Monday after Warren Buffett’s Berkshire Hathaway disclosed that it had slashed its ownership stake in the iPhone maker.

Nvidia, the chip company that’s become the poster child of Wall Street’s AI bonanza, fell even more, 5.5%. Analysts cut their profit forecasts over the weekend for the company after a report from The Information said Nvidia’s new AI chip is delayed. The recent selling has trimmed Nvidia’s gain for the year to 104% from 170% in the middle of June.

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Because the Magnificent Seven companies are the market’s biggest by market value, the movements for their stocks carry much more weight on the S&P 500 and other indexes.

Worries outside corporate profits, interest rates and the economy are also weighing on the market. The Israel-Hamas war may be worsening, which beyond its human toll could also cause sharp swings for the price of oil. That’s adding to broader worries about potential hotspots around the world, while upcoming U.S. elections could further scramble things.

Wall Street has been concerned about how policies coming out of November could impact markets, but the sharp swings for stock prices could affect the election itself.

The threat of a recession is likely to put Vice President Kamala Harris on the defensive. But slower growth could also further reduce inflation and force former President Donald Trump to pivot from his current focus on higher prices to outlining ways to revive the economy.

A strong jobs market supports consumer spending, which drives economic growth. The link between employment and spending will remain a key focus heading into the U.S. presidential election, said Quincy Krosby, chief global strategist for LPL Financial.

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“It comes down to jobs,” she said. “When we get to election day, the unemployment rate is going to be extremely important.”

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AP Business Writers Elaine Kurtenbach, Matt Ott, Christopher Rugaber and Damian J. Troise contributed.

Los Angeles, Ca

Arrest made in deadly shooting at 4th of July gathering in Compton; search for 2nd suspect continues

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Arrest made in deadly shooting at 4th of July gathering in Compton; search for 2nd suspect continues

Los Angeles County Sheriff Robert Luna gave an update Thursday on several shootings over the Fourth of July weekend that left three people dead and several others injured.

Police arrested Antoine Jones, a 50-year-old man from the Los Angeles area, who they believe is responsible for the murder of a 19-year-old woman and the attempted murder of two additional surviving female victims who were attending a large community block party in Compton.

On July 4 at approximately 11:40 p.m., deputies from the Compton station responded to an apartment complex on the 700 block of West Laurel Street following reports of multiple people being shot.

Meah Bordenave-Jenkins, a 19-year-old nursing student at the University of Nevada, Las Vegas, was killed when gunfire broke out at the party.

Meah Bordenave-Jenkins and Eric Washington are pictured in a Los Angeles Sheriff’s Department bulletin. (LASD)

Deputies located Bordenave-Jenkins and the two other women suffering from gunshot wounds outside of the apartment complex.

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“While today’s announcement represents an important step towards justice for Meah and her family, our work is very far from being over,” said LASD Sheriff Robert Luna.

The LASD is also seeking the public’s help in identifying those responsible for the murder of Eric Washington, 37, a beloved community activist and former government staffer, and the attempted murder of another surviving man injured that same night at the same party.

Washington was reportedly killed while trying to deescalate a conflict at the party, his family said. Deputies found victim Washington suffering from a gunshot wound inside the complex.

Investigators later learned that another man had also been shot at some point during the incident.

Bordenave-Jenkins and Washington both died from their injuries. The remaining victims, two women and a man, sustained non-life-threatening injuries and have been released from the hospital. They have not been identified by police.

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Detectives determined the two shootings happened moments apart at the party but appear to be separate and unrelated.

  • 2 dead, 3 injured at Compton July 4 celebration
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  • Compton fatal shooting
  • Compton fatal shooting
  • Compton fatal shooting
  • Compton fatal shooting
  • Compton fatal shooting
  • Compton fatal shooting
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  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration

Detectives identified Jones as the suspect responsible for Bordenave-Jenkins’ death and the attempted murder of the two surviving women. Authorities located Jones on July 14 in Los Angeles and took him into custody.

The LASD is still searching for the suspect or suspects responsible for the murder of Washington and the attempted murder of the surviving male victim.

“Although today’s arrest is significant, this investigation remains extremely active,” Luna said.

“There were hundreds of people at this gathering,” Luna said. “Somebody knows, somebody saw or somebody heard what happened.”

The LASD also announced they’re searching for a suspect in a separate shooting at a different Fourth of July gathering that occurred in the early morning of July 5.

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At approximately 12:10 a.m., Compton deputies responded to the 2100 block of North Grandee Avenue, where they located a 30-year-old victim, Thaddeus Clark, and a second victim suffering from gunshot wounds at the gathering.

Clark, a father of three, did not survive his injuries, Luna said.

The LASD is urging anyone with information about Clark’s murder and the attempted murder of the surviving victim to contact the LASD Homicide Bureau.

Although these shooting incidents occurred at gatherings less than an hour apart, investigators found no evidence that the two were connected, Luna said.

Luna also announced three suspects have been arrested in connection with a shooting in East L.A. on July 5. It happened as crowds crossed the intersection near Whittier Boulevard and Leonard Avenue during a World Cup match.

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Four people were hit by gunfire, including two men, one woman and a boy. None of the injuries were life-threatening.

The sheriff said the alleged shooter, a 15-year-old known gang member, was arrested. Two female suspects, ages 21 and 38, have been arrested in the Lancaster and Palmdale areas for their alleged roles in luring the primary victim to the location and assisting the shooting suspect in evading arrest.

They’re all facing four counts of attempted murder.

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Los Angeles, Ca

Water main break floods West Hollywood streets, traps cars

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Water main break floods West Hollywood streets, traps cars

A broken water main sent water gushing from an apartment building and turned nearby streets into rivers in West Hollywood early Thursday morning. The break was reported around 3 a.m. near Holloway Drive and Sunset Boulevard. “It’s a rupture of one of the significant mains that goes through here. West Hollywood, as it turns out, […]

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Remains of murder victim identified as missing Southern California millionaire 

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Remains of murder victim identified as missing Southern California millionaire 

After more than four decades, the remains of a woman who was found buried in the mountains of Riverside County were identified as a multi-millionaire who went missing in 1981.

The body of Thelma Gaston was discovered by a person gathering firewood in a mountainous area near Sugar Loaf Mountain and the Pinyon Crest community on Nov. 28, 1981.

After experiencing a series of heartbreaking life events, including the death of her husband and her 32-year-old son in the same year in 1957, Gaston continued forging ahead, focusing on her business of buying repossessed properties and selling them. 

By 1980, she had amassed a fortune estimated to be over $20 million, SFGATE reported.

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On June 28, 1981, a note was left on the front door of her home near Century City, saying she was out searching for her cat. However, she never returned home and her loved ones did not hear from her.

By then, Gaston was 80 years old. As Los Angeles Police Department detectives investigated her disappearance, they discovered a younger man, Lawrence Remsen, then 39, had recently entered her life and was the woman’s romantic companion, SFGATE reported.

At one point, the woman’s friends said Gaston had wondered about Remsen’s motives in being with her.

Police eventually found letters and documents reportedly signed by Gaston that gave Remsen power of attorney. Another letter allegedly written by the woman claimed she had run away “to have some fun in life.” However, her friends said the move was completely out of character.

Detectives later confirmed the letters were certified with a stolen notary stamp and her signatures were believed to be forged. 

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Remsen had tried selling some of Gaston’s properties and attempted to withdraw more than $100,000 from her bank accounts. Remsen eventually fled the Southern California area.

A few months later, he was arrested by border agents when he tried to enter the U.S. from Mexico. He was charged with Gaston’s murder even though the woman’s body had not been found.

During a trial hearing, Remsen later claimed he found the woman dead of natural causes in her home and, attempting to take her fortune, had disposed of her body in the ocean.

The judge disagreed and later ruled that Remsen had killed the woman “intentionally and with malice.” He was convicted of murder and sentenced to life in prison.

Gaston’s body was later discovered buried in a shallow grave in the mountains. However, due to the poor condition of the remains, investigators were unable to narrow down an identity.

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A breakthrough occurred in 2022 when the Riverside County Sheriff’s Coroner’s Bureau received new funding to reexamine long-standing unidentified cases. 

“Combined with significant advances in forensic science, this funding opened new avenues for identification,” the sheriff’s office said.

In May 2026, utilizing investigative genetic genealogy and dental records, the remains were positively identified as Gaston’s.

“The Riverside Sheriff’s Coroner’s Bureau extends its sincere appreciation to everyone whose dedication, expertise, and perseverance made this identification possible,” officials said in a statement. “Together, these efforts have ensured that Ms. Gaston has her name—and her story—returned to her.”

Remsen, who is now 83 years old, continues serving his life sentence at the California Institution for Men in Chino.

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