📉 Axios PM: Why markets tanked

Plus: Budget airlines upgrade | Monday, August 05, 2024

Open in app View in browser   Presented By Amazon   Axios PM By Mike Allen · Aug 05, 2024 Good afternoon. Today's newsletter, edited by Sam Baker, is 378 words, a 1.5-min. read. Thanks to Sheryl Miller for copy editing.     1 big thing: Global stock panic   Data: Yahoo Finance; Chart: Axios Visuals Today's plunge in global markets seems to have been driven by complex international trades — not by a loss of confidence in the U.S. economy, Axios Macro co-author Neil Irwin writes. There's no reason that a 0.2 percentage point rise in the U.S. unemployment rate should trigger a 12% collapse in the price of Japanese stocks — the selloff that touched off a day of chaos worldwide. 💸 The S&P 500 ended the day down more than 2%, its biggest one-day drop in nearly two years. But there's more going on than fallout from Friday's jobs report. Several of the biggest tech stocks were down because Wall Street is worried those companies are spending too much money on AI, for example. 🏦 The bottom line: There are moments when markets just have a wild and woolly feel to them — when the scale of the moves is unmoored to the changes happening on the ground. It often happens when players with big, leveraged positions are forced to unwind them all at once. This looks like one of those times. Go deeper.     2. 💺 Budget airlines go premium   Illustration: Aïda Amer/Axios   ✈️ Historically low-cost airlines are suddenly embracing premium upsells like extra legroom and priority boarding, Axios' Alex Fitzpatrick writes. Spirit Airlines recently unveiled a new fare model, with a top tier that includes bigger seats, in-flight snacks and priority boarding. Southwest Airlines rolled out assigned seating just a few days earlier. JetBlue may start offering first-class service on domestic flights next year, industry analysts say. ⏱️ Reality check: To compete with the major airlines, they'll also need to focus on operations and on-time performance. Share this story.     A message from Amazon "Amazon offers so many career paths to explore"     Elia earned her associate degree in mechatronics through Amazon Career Choice. "The thing that caught my eye more than anything, was the chance for career growth," she said. More info: Since 2012 more than 200,000 employees have used Amazon Career Choice to learn and earn more. See the impact.     3. Catch me up   Data: NOAA; Map: Will Chase ⛈️ Tropical Storm Debby made landfall this morning, threatening to pummel parts of the Southeast with record rainfall. Go deeper. ⚖️ A federal judge ruled that Google violated antitrust law, illegally maintaining a monopoly over web searches. Go deeper. 🇺🇳 Nine staff members of the UN Relief and Works Agency for Palestinian Refugees (UNRWA) may have been involved in last year's terrorist attack on Israel, and have been fired. Go deeper.     4. 📸 1 for the road   Photo: Maddie Meyer/Getty Images An underwater camera captures members of France's artistic swimming team during today's competition.     A message from Amazon "Amazon offers training and support to help you grow"     Maydeen turned a temporary job at Amazon's Edison, New Jersey fulfillment center into a career. "Since starting at Amazon I've been promoted five times," she said. More info: Amazon is committed to helping employees thrive with free, on-the-job training in New Jersey and beyond. Find out more.   Are you a fan of this email format? Your essential communications — to staff, clients and other stakeholders — can have the same style. Axios HQ, a powerful platform, will help you do it.   Axios thanks our partners for supporting our newsletters. Sponsorship has no influence on editorial content. Advertise with us. Axios, PO Box 101060, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. To stop receiving this newsletter, unsubscribe or manage your email preferences.   Was this email forwarded to you? Sign up now to get Axios in your inbox.   Follow Axios on social media: