But as we look to Wall Street and see the DAO going down as part of this global market panic, let's begin there. Let's bring in CNN's Julia Chatterly. Julia, we hear the bell there. What's the damage?

It was an ugly day. Just to give you some context here, this is the worst trading day for stock markets in nearly two years. In the early minutes of the session today, we saw around a trillion dollars worth of wealth wiped off just a handful of the biggest tech stocks. So ugly is the way to describe it. I won't use the word panic. This is not panic, let's be clear. But there is a palpable concern out there that the US economy is slowing far quicker than we thought. And that was fueled by, as you said, the jobs number that we got on Friday, weaker manufacturing data last week as well. It's raised questions about why on earth the Fed didn't cut rates last week if it knew this data was coming. I think there's justifiable concern there. I also think we have to take a step back briefly and just say, Look, we're still overall adding jobs to the US economy. No one's talking about imminent recession, but they are talking about rising risks and that the Fed should act on that, and I think they will. Now, if it were just that, I'd be tempted to suggest that there's an overreaction going on in stock markets, but the problem is it's not just that.

One of the strongest pillars of the market so far this year has been the tech stocks. We've now, for a number of days, seen a lot of people taking money off the table. They're still in profit, but they're just taking money off the table, and that's had an impact. Fast forward to what we saw last night, the Japanese stock market, that fell 12%. Now, that is panic. You don't see something like that without seeing pressure on US markets. Plus, it's summertime time. There's simply less investors out there. Jake, I will say this, Silver Linings, the conversation has changed now over the Fed. It's not about if they cut rates in September, it's about how much they do. I think that's the right conversation to be having.

All Julia Chatterly, thanks so much for that. I appreciate it. Let's discuss further with CNN Global economic analyst Rana Peruha. Rana, so you think that this big correction in the market is not just about the jobs numbers, the disappointing unemployment number from last week. What else do you think might What is it at play here?

Well, the question is, what isn't at play? Julia is absolutely right that tech is a big part of this story. I said back in March that I thought that AI in particular, which is the story that's been driving the gains in a lot of those tech stocks, may have been overblown. That's not to say it's not going to pay off, but it's not going to pay off tomorrow. It's not going to pay off next quarter. This is a 10-year story. I think the markets are starting to recognize that, particularly as earnings come in, and there have been some disappointing numbers in recent days. We also have an incredibly There's a really precarious geopolitical situation out there right now. With Kamala Harris making gains now in the presidential race and looking stronger, I think a lot of investors that may have been thinking, Oh, I'm going to get a Trump II administration. Maybe there's going to be tax cuts for corporates, they may be rethinking that. So there's just a lot in play. And of course, there is also some data, and this is important to suggest that there is a slowdown in the US economy.

Let me say I'm not overly worried about that. We have frankly been due, I think, for a bit of a slowdown. We've had an incredibly robust recovery, but I would want to see another one or two data points to support that before I would say, yes, this is a big deal, this is a recession.

So some economic analysts point out that the market is not the same thing as the economy. They're related, but it's not the same thing, and they're arguing that investors are overreacting right now. You agree with that?

I do totally agree with that. I would also say there's an entire generation, multiple generations actually, the investors that have never been in the market in a period of rising interest rates. They look at over 4% interest rates and say, Oh, my gosh, the sky's falling, and we need to lower them again. Well, let's take it one a time. This Fed has been very focused on mainstream, very focused on making sure that inflation doesn't hit working people in their pocketbooks. I think that that is where the emphasis should be. Investors have made a lot of money in recent years. We're talking not about losses right now. We're talking about gains being given back. I would note that aside from tech stocks and some of the other sectors, there were, even at the end of this trading day, some gains in areas like industrials, real estate. The sky is not falling yet. I'm I'm not too worried about Wall Street becoming poor.

You noted the focus on inflation from the Fed, and average Americans already have been feeling the impacts of inflation for a long time. How worried should average Americans be about the prospect of bigger economic problems, including a potential recession.

I'm not overly worried about a recession yet. I want to see one, two more months of data. Do I think that the Fed is probably going to air now on the side of caution and we're going to see some rate cuts throughout the rest of the year? Yeah, for sure. I don't think we're going to see any emergency meeting. I don't think we're even going to see necessarily a half a point rate cut, which is what Wall Street has been calling for. I just think we're in an environment where the conversation has changed, as Julia said earlier. There's a balance. There's always been a balance between the interests of Main Street, inflation, Wall Street, wanting low rates for stocks to go up, and the Fed's trying to juggle all that right now.

Some argue that because vice President Kamala Harris's personal approach economics is still largely undefined. They have questions about that. We did see today, she added White House economic aid, Jean Sperling to her campaign, who obviously worked for Biden, Obama, Bill Clinton. Given the state of the markets, what else do you think she needs to do to show that she has a team that investors can be confident about she has a plan?

Great question. First of all, I'm bullish on the addition of Jean Sperling. I think that sends good signs about the care economy. I think that we're going to see child tax credit issues really being front and center. This is somebody that's managed the roll out of fiscal stimulus. To me, that says, yes, this is a vote for narrowing any gap between the Biden administration and a potential Harris administration. I think she needs to continue to narrow that gap. I think that by and large, even though Biden himself may not have been a popular candidate, people have felt the most robust recovery in in a rich world over the last few years. I think if she can find new ways to message that and really draw that point home, that will be a good thing.

Stocks around the world taking a major hit. That includes here in the US, where the Dow closed down more than a thousand points earlier Today, investors seem spuked after a worse than expected jobs report, renewing recession fears. But one analyst tells CNN it's a classic market panic. So how worried should we all be? Well, let's bring in CNN business editor at large, Richard Quest. Richard, what is your read on how bad this is?

It is grim, but it's not panic and it's not crisis. We know why this is happening. It's happening because the Fed rate rises. The very medicine, Jake, that you and I spoke of over the last two years is doing what it was intended to do. It has slowed the US economy. It has crushed inflation. But the other side of that coin, to mix me metaphors, is that it has slowed sufficiently that unemployment is now starting to rise and growth could tip over. Likely not, but it could be towards recession. Jake, the ultimate question, has the Fed left it too late to start cutting rates? We won't know the answer to that, but I can guarantee you a dollar to a pound that they will cut in September and up to maybe 50 basis points.

All right. I want to ask you, as long as I have you here, there's another major story breaking this afternoon. A district judge here in the United States has ruled that Google violated US antitrust law with its search business. They called it a monopolist. Walk us through this case, how it could impact Google and consumers, including most of us who use Google every day.

Well, this is the one about how Google has meshed its browser, how Google manages to hold on to people, how it forces itself into computer operating systems. The arguments aren't new, but here we have a judge in the court saying, Google is a monopolist. Using those words, Google is a monopolist. Now, of course, we'll go to the remedy section. Do you strip out Chrome? Do you make Google more difficult? How do you set it up so that Google can't continue? There's only one thing of which I am certain here, Jake. Only one. Google is going to appeal this as far and as fast as they possibly can because this decision, I mean, it is an instant court decision. You've got many layers of appeal which we've got to get, will affect Alphabet, it will affect Microsoft, it will affect Meta, and all stations in between.

We are following breaking news on the economy. Us Markets in a tailspin today, with the Dow Jones industrials closing down more than a thousand points, fueled by recession fears. Cnn's business editor at large, Richard Quest, is here along with CNN economics and political commentator, Katherine Rempel. Good to have you here. Richard, as you know, the market can be a jittery thing. Clearly made more jittery by that jobs report on Friday, there were already some concerns about froth in the market. I just wonder, as you look at the collections of things here, is it overstating the risks or is this a real warning sign?

It's both. Split it in half. Let's do this. You've got the tech and the whole thing of the question of AI, froth, overvalued, profits nowhere near. Therefore, It's time to take a bath on that. But the other one, more importantly, arguably, is the market saying, Hang on, the Fed is late to cut interest rates. Eleven increases in rates in two years has finally had the full effect of medicine. That is not only crushing inflation, it is also slowed down growth to where unemployment and jobs protections are now at risk. We're seeing it in the data. The good news, in a sense, is that if the Fed is late, so what? If the Fed is late, there is 500 basis points of interest rate cuts that they can now deploy that they didn't have two years ago. And so they can move. Yeah, there could be a slowdown. Yeah, there could be a technical recession. But it is by no means the catastrophe, calamity, disaster that anybody would see.

Okay, Catherine Rappell, and you and I were speaking about this on Friday before the market dropped. When you look at other factors the economy, GDP growth, for instance. The job market still strong after, at least on the trend line, a slower report on Friday. Is the economy, when you look at the fundamentals, on the precipice of recession?

It doesn't really look like it right now. As you point out, a lot of other data that have come in in recent weeks have been relatively strong, or at least okay. I mean, some of them have even bested expectations. Gdp growth was way than expected in the most recent report a couple of weeks ago. So a lot of the numbers look pretty good. The worry is that they're trending in the wrong direction. Like unemployment, the number that we got on Friday, 4.3%. 4.3% is a pretty serviceably low number. I mean, in the grand sweep of history, it's a pretty low unemployment rate, but it has been rising each of the last four consecutive months. So the worry is if it keeps heading in that direction, then Yeah, that would be bad. We want it to stay where it is, go no higher. That's what markets are worried about, and that's what regular consumers are presumably worried about.

Invariably, as you both know, when the market suffers, they look to the Fed for a rescue. Austin Goulesby, who's President of the Federal Reserve Bank of Chicago, he said the following to push back against this idea, summer floating of an emergency Federal Reserve cut prior to their meeting in September. He said, We've got to be monitoring the real side of the economy. There's nothing in the Fed's mandate that's about making sure the stock market is comfortable. I look at that, Richard Ques, and I see them saying, Let the market go through its stuff. We'll focus on the economy.

He's talking about what used to be called the Greenspan Put or the Fed, but where basically Greenspan, Bernanke, even Yellen to an extent, bailed out the market. But here is where it differs. Gullsby is saying, Look, on its own, we're not going to bail out investors. Where he will change his mind very quickly is if it starts to become a downward spiral feeding into the economy.

Okay, we'll be watching for it. Richard, Katherine, great to have you on. Thanks so much.

People see a lot of red when stock prices are down a lot. It's nerve-wracking.

Cnn asked Economist Mark Zandi his top three tips on what to do with an investment portfolio during economic turmoil.

Don't pay attention. Don't pay attention. Don't pay attention. Just go read a book. The stock market goes up It goes down, it goes all around. You just don't want to get caught up in the ups, downs, and all around. Cutting through all that volatility, it's general trend up, and that's what you're investing in. If you're approaching retirement, you're worried about holding Building on preserving hard earned dollars that you've saved over the years, then you might want to, as they say, take a little off the table, have a little less of your overall investment portfolio invested in the equity market, the stock market. It's always a great idea to check in with if you a financial planner, check in and say, Hey, what do you think? Take a look. Does everything look okay to you? Do you have any suggestions? But I'd be shocked if they don't tell you roughly the same thing I just told you. Don't pay attention.

Us markets appear to be in a free all. Here's why and whether you should be concerned. Recently, the US government released the July jobs report, and it wasn't what many people were expecting. Now, it wasn't disastrous, but the report did show job growth slowed and the unemployment rate moved up again. Investors are worried that the labor market and the US economy more broadly are weaker than previously expected and that a recession looks more likely. That's because if people lose their jobs, they, of course, have to pull back on their spending, and that hurts the bottom line of businesses which may have to cut more jobs. It's a bit of a vicious cycle. There's also growing concerns that this weakening suggests that the Federal Reserve dropped the ball and waited too long to cut interest rates. So what happens now? Well, a rate cut was already expected at the Fed's meeting in September, although some believe the Fed may need to move sooner than that. And what about everyday investors? Should they make a move? Well, not necessarily, because market volatility is normal. We do tend to see a 10% pullback about once a year. Experts advise long-term investors to just ride the bumps or maybe even use sell-offs to buy.

We're following the market meltdown. You can see a whole lot of red there. At its worst today, the Dow is down more than a thousand points as investors rushed to sell after Friday's week US jobs report helped rattle global exchanges overnight.

And those deep drops in the red set the tone for the big plunge that we're seeing on Wall Street. So let's talk about this now with CNN business anchor Julia Chatterly.

Julia, you say there's no panic, but we see the fear, and it is dripping all over that board there that a recession is coming.

Yeah, so we're very cautious about using the P-word, particularly in financial markets, and creating self-fulfilling prophecy. What you're What we're seeing is fear, it's not panic. I'll reiterate that again. I'm also very much watching the fact that we are off the market lows at this moment. The market close today is going to be really important to give us a sense of direction. You said it, Brianna, There is a palpable fear that the US economy is slowing more than we thought, and we saw that last week. It was exacerbated by weak manufacturing data, by the jobs numbers, too. That, of course, then raised questions about why on earth the Federal Reserve didn't lower interest rates last week when it had the chance. My context on this, no one's talking about imminent recession. Yes, the economy is slowing, but we are still overall adding jobs. Even on this, I think we need to take a deep breath. I even would be tempted to say if this were the only thing going on, that perhaps stock markets are overreacting to the US data. The point is, though, it's not the only thing going on. We have seen tech stocks fueling the stock market rally all year, and suddenly Secondly, people are looking at that and saying, Have they gone too far, too fast?

You can see the weakness in tech stocks today. That's also adding to this, and it's been going on for days. Then overnight, we get the Japanese stock market falling 12%. I'll allow you to use the P-word on that. Now, that's panic. You don't see that move in a big global market without seeing spillover effects into the US markets. The other thing I'll add here is also geopolitical risk. You've been talking about it. It all fuels sentiment in addition to this being a summer Monday. Now, there are silver linings here. One, if you're a stock market investor and around 60% of Americans are, then you're still up around 10% on the S&P 500 and the Nasdaq. We're just giving back gains, at least for now. If you're a borrower out there or you're struggling with high prices, which, let's face it, is everybody, the conversation around the Federal Reserve now has completely changed. We are not talking about will or won't the Federal Reserve cut rates in September. We're talking about how much. They're watching all of this, and we will continue to watch the data. If they need to cut rates by more than a quarter of a percentage point in September, they will do so.

I think it's clear to say help is coming, even if it feels like it's late, guys, at this stage.

Yeah, that's a really good point to put it into that context. Julia, thank you so much for doing.