Dow drops 1,000 points, and Japanese stocks suffer worst crash since 1987 as markets quake worldwide

NEW YORK (AP) — A scary Monday that started with a plunge abroad reminiscent of 1987 ’s crash swept around the world and pummeled Wall Street with more steep losses, as fears worsened about a slowing U.S. economy.

The S&P 500 dropped 3% for its worst day in nearly two years. The Dow Jones Industrial Average reeled by 1,033 points, or 2.6%, while the Nasdaq composite slid 3.4% as Apple, Nvidia and other Big Tech companies that used to be the stars of the stock market continued to wilt.

The drops were the latest in a global sell-off that began last week. Japan’s Nikkei 225 helped begin 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.

Professional investors cautioned that some technical factors could be amplifying the action in markets, and that the drops may be overdone, but the losses were still neck-snapping. South Korea’s Kospi index careened 8.8% lower, and bitcoin dropped below $54,000 from more than $61,000 on Friday.

Even gold, which has a reputation for offering safety during tumultuous times, slipped about 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 3.89%.

“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.”

Of course, the U.S. economy is still growing, the U.S. stock market is still up a healthy amount for the year 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.

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 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. 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, with pressure rising on companies to show how AI is turning into profits, and “a market that was ahead of itself.”

The only way for stocks to look less expensive is either for prices to fall or for their profits to strengthen. Expectations are still high for the latter, with growth for S&P 500 profits this past quarter looking to be the strongest since 2021.

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.

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

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 3.3%, washing out what had been a revival for it and other beaten-down areas of the market.

Making things worse for Wall Street, Big Tech stocks 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 record after record 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 4.8% 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, 6.4%. 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 nearly 103% from 170% in the middle of June.

Another Big Tech titan, Alphabet, fell 4.4% after a U.S. judge ruled Google’s search engine has been illegally exploiting its dominance to squash competition and stifle innovation.

All told, the S&P 500 fell 160.23 points to 5,186.33. The Dow sank 1,033.99 to 38,703.27, and the Nasdaq composite tumbled 576.08 to 16,200.08.

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 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.

“It comes down to jobs,” said Quincy Krosby, chief global strategist for LPL Financial. Jobs drive spending by U.S. consumers, which in turn is the biggest part of the U.S. economy.

“When we get to election day, the unemployment rate is going to be extremely important.”

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

Trader James Conti on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Traders work on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

A screen above the trading floor of the New York Stock Exchange shows the closing number for the Dow Jones industrial average, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Michael Gagliano, left, confers with a colleague on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024.(AP Photo/Richard Drew)

Trader Leon Montana works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

A pair of traders work on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Specialist Gregg Maloney works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Trader Robert Charmak works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Trader Michael Milano works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

NYSE President Lynn Martin watches trading on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

A television screen on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024, headlines trading. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Specialist Glenn Carell works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Trader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024.(AP Photo/Richard Drew)

Specialist Dilip Patel works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world.(AP Photo/Richard Drew)

FILE - Trader John Romolo works on the floor of the New York Stock Exchange, Aug. 2, 2024. Japan's benchmark Nikkei 225 stock index has lost 12.4% on Monday, August 5, 2024, in the latest bout of sell-offs that are jolting world markets. (AP Photo/Richard Drew, File)

FILE - People pass the New York Stock Exchange on July 30, 2024 in New York. Japan's benchmark Nikkei 225 stock index has lost 12.4% on Monday, August 5, 2024, in the latest bout of sell-offs that are jolting world markets. (AP Photo/Peter Morgan, File)

A currency trader reacts near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A monitor shows the Nikkei 225 stock index in Tokyo, Monday, Aug. 5, 2024, indicating at one point, over 2,537 points of lowering. (Shohei Miyano/Kyodo News via AP)

A photographer takes a photo of a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader works near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A person walks in front of an electronic stock board showing Japan's Nikkei 225 index Friday, Aug. 2, 2024, in Tokyo. Shares in Europe and Asia tumbled Friday, with Japan’s Nikkei 225 index slumping 5.8% as investors panicked over signs of weakness in the U.S. economy. (Kyodo News via AP)

FILE - People pass the New York Stock Exchange on July 31, 2024 in New York. World shares have tumbled on Friday, August 2, 2024, with Japan's Nikkei 225 index slumping 5.8% as investors panicked over signs of weakness in the U.S. economy.(AP Photo/Peter Morgan, File)

A board above the trading floor shows the closing number for the Dow Jones industrial average, at the New York Stock Exchange, Friday, Aug. 2, 2024. Stocks tumbled Friday on worries the U.S. economy could be cracking under the weight of high interest rates meant to whip inflation.(AP Photo/Richard Drew)

ATLANTA (AP) — The mother of a student at the Georgia high school where a teen allegedly killed four people says information indicating staff were warned he was having a crisis shows the shooting could have been prevented.

“The school failed them, that they could have prevented these deaths and they didn’t,” Rabecca Sayarath said Sunday in a telephone interview with The Associated Press. “I truly, truly feel that way.”

Sayarath’s daughter, Lyela, told reporters on Wednesday, the day of the shooting at Apalachee High School in Winder, Georgia, that administrators appeared to be looking for Colt Gray, the 14-year-old who has been charged with four counts of murder, before the gunfire began.

Others, though, are declining to blame school or law enforcement officials.

"I’m not going to referee or second-guess what happened with the authorities the other night," U.S. Sen. Raphael Warnock, a Georgia Democrat, said on CNN's “State of the Union" on Sunday. “I applaud our first responders. When others are running away from danger, they run toward the danger in order to do the best they can.”

Officials say Gray shot and killed students Christian Angulo and Mason Schermerhorn, both 14, and teachers Richard Aspinwall, 39, and Cristina Irimie, 53. Eight other students and a teacher were injured — seven of them shot — and are expected to recover.

Annie Brown told The Washington Post that her sister, Colt Gray’s mother, texted her saying she spoke with a school counselor and warned staff of an “extreme emergency” before the killings. Brown said Marcee Gray urged them to “immediately” find her son to check on him.

Brown provided screen shots of the text exchange to the newspaper, which also reported that a call log from the family’s shared phone plan showed a call was made to the school at 9:50 a.m. Warrants for Gray's arrest say the shooting started at 10:20 a.m.

Brown confirmed the reporting to The Associated Press on Saturday in text messages but declined to provide further comment.

Marcee Gray expressed remorse for the shootings Saturday to The Washington Post and The New York Post.

“I am so, so sorry and can not fathom the pain and suffering they are going through right now,” Gray told The Washington Post in a text.

“It’s horrible. It’s absolutely horrible,” Gray told The New York Post outside her father’s home in Fitzgerald, Georgia, about 150 miles (240 kilometers) south of Atlanta.

Charles Polhamus, the boy's grandfather, has told multiple news outlets that Marcee Gray got a text from her son on Wednesday saying he was sorry. Polhamus told CNN that Marcee Gray drove to Winder, more than 200 miles (320 kilometers) from Fitzgerald, immediately after the shooting.

The Washington Post also reported that texts show relatives contacted the school about the boy's mental health a week before the shooting, and that Brown told a relative he was having “homicidal and suicidal thoughts.” The newspaper reported that the teen's grandmother, Deborah Polhamus, met with a school counselor to request help.

The boy "starts with the therapist tomorrow,” Polhamus wrote in a text to Brown after that meeting.

Investigators haven't said what they believe might have motivated Gray or whether they believe he targeted particular victims.

Authorities have said Gray's father, Colin Gray, gave him access to the semiautomatic AR-15 style rifle used in the shooting. It's not clear how Gray brought the gun to campus or what he did with it in the two hours between school starting at 8:15 a.m. and when shots first rang out.

Colin Gray became the first parent of a school shooting suspect to be charged in Georgia, District Attorney Brad Smith said Friday. He’s accused of second-degree murder, involuntary manslaughter and cruelty to children for providing his son with the rifle.

Colin Gray is jailed in Barrow County after declining to seek bail in a brief court hearing Friday in Winder. Colt Gray is being held in a juvenile detention center after declining to seek bail. Neither has been indicted or entered a plea.

Lyela Sayarath said Wednesday that Colt Gray had left her algebra classroom and that she believed he was skipping class.

In the minutes before the shooting, a female administrator came to her class looking for a student with the same last name and almost identical first name as Gray, she said. That other student was in the bathroom, but the administrator demanded to see his bag. That student returned with his bag moments later, Sayarath said, and told her that administrators had concluded he wasn't the student they were looking for.

Someone also called the teacher on the intercom, apparently asking about Gray, Sayarath said. She said as the intercom buzzed a second time, the teacher responded, “Oh he's here,” seeing Gray outside the classroom door.

When students went to open the door, which automatically locks from the inside when closed, Sayarath said they backed away. She said she saw Colt Gray turn away through the window of the door and then she said she heard gunshots — “10 or 15 of them at once, back-to-back.”

Rabecca Sayarath, Lyela’s mother, has said she believed the school erred by sending an unarmed administrator to look for Colt Gray instead of one of Apalachee High's armed school resource officers.

When she questioned Barrow County Sheriff Jud Smith about her daughter’s account at a Wednesday night news conference, Smith cautioned, “With all due respect, ma’am, I think your information is incorrect.”

It's unclear if Barrow County school authorities knew before the shooting that Colt and Colin Gray previously had been interviewed by a sheriff's deputy in neighboring Jackson County in May 2023 after a report of an online threat to shoot up a middle school that Colt Gray, then 13, attended.

Colt Gray told the deputy that “he would never say such a thing, even in a joking manner,” according to a report filed by investigators. No action was taken because of inconsistent information about the social media account used to make the threats.

Colin Gray told the investigator back then that Colt had access to unloaded guns in the house but knew “how to use them and not use them.” He also said his son had struggled since he and his wife separated and that Colt was picked on in school.

Nicole Valles, a spokesperson for the Barrow County school district, declined to comment Sunday in response to emailed questions seeking more details about what may have happened before the shooting.

“Because this is an active investigation and now court proceedings have begun, we are not commenting on specific details,” Valles wrote, referring questions to the district attorney.

Smith didn't immediately respond to emails Sunday with similar questions, while the Georgia Bureau of Investigation referred requests for comment to the district attorney.

Colin Gray, 54, the father of Apalachee High School shooter Colt Gray, 14, sits in the Barrow County courthouse for his first appearance, on Friday, Sept. 6, 2024, in Winder, Ga. (AP Photo/Brynn Anderson)

Colt Gray sits in the Barrow County courthouse during his first appearance for the Wednesday shooting at Apalachee High School, Friday, Sept. 6, 2024, in Winder, Ga. (AP Photo/Brynn Anderson, Pool)

Mark Gorman holds a candle during a candlelight vigil for the slain students and teachers at Apalachee High School, Wednesday, Sept. 4, 2024, in Winder, Ga. (AP Photo/Mike Stewart)

People embrace at a makeshift memorial after a shooting Wednesday at Apalachee High School, Thursday, Sept. 5, 2024, in Winder, Ga. (AP Photo/Mike Stewart)

A memorial is seen at Apalachee High School after the Wednesday school shooting, Saturday, Sept. 7, 2024, in Winder, Ga. (AP Photo/Mike Stewart)

A memorial is seen at Apalachee High School after the Wednesday school shooting, Saturday, Sept. 7, 2024, in Winder, Ga. (AP Photo/Mike Stewart)