Why is the stock market freaking out today?

E AS IT HAS BEEN FOR WHILE BEN WEDEMAN. THANK YOU SO MUCH TO YOU AND YOUR CREW THERE ALL RIGHT. >> BREAKING NEWS, MARKETS ABOUT TO OPEN. I THINK THEY SHOULD BE OPENING ACTUALLY NOW IS AFTER A GLOBAL SELL-OFF, EUROPEAN AND ASIAN MARKETS PLUMMETING AROUND THE WORLD AND WE'VE BEEN LOOKING AT AND THEY WERE MORE THAN 1,000 POINTS DOWN. RAHEL SOLOMON, WE ARE SO LUCKY TO HAVE YOU HERE BUT YOU BRING. US BAD NEWS. >>BRING BAD NEWS TODAY AT LEAST SO FAR, WE'LL SEE HOW THE MARKETS OPEN AND WE'LL GET THAT PULLED UP JUST AS SOON AS THE BIG BOARD SO WE CAN SEE WHERE THINGS ARE RIGHT NOW ACTUALLY BECAUSE IT'S UGLY, THERE IT IS. >> SO WE'RE STILL OFF. YEAH, ABOUT 1,000 POINTS FOR THE DOW. SO THIS IS A CONTINUATION AND WE'LL SEE HOW THE S&P AND THE TECH HEAVY NASDAQ ARE OPENING. I IMAGINE PROBABLY NOT GOOD. BUT THIS IS A CONTINUATION FROM FRIDAY, RIGHT? IT'S THE NEW WEEK. SAME OLD CONCERNS THAT PLAGUED THE SESSION ON FRIDAY. SO ON THE ONE HAND, YOU HAVE THAT JOBS REPORT THAT CAME OUT OBVIOUSLY WEAKER THAN EXPECTED, AND YOU HAVE SOME WHO SAY IT'S ONE JOBS REPORT, IT'S ONE DATA POINT THAT DOES NOT NECESSARILY MAKE A TREND. ON THE OTHER THIS IS WHERE. THE MARKET APPEARS TO BE. THERE IS A GROWING FEELING THAT THE WEAKENING THAT WE HAVE ALREADY SEEN IN THE LABOR MARKET IS INTENSIFYING, BUT ALSO MAYBE THE FED DROPPED THE BALL. MAYBE THEYAITED TOO LONG. WE CAN ACTUALLY PULL UP FOR YOU WHERE THE FED FUS RATE HAS BEEN AND YOU CAN SEE IT'S BEEN IN THAT 5% RANGE FOR QUITE SOME TIME, SO TO HAVE SORT OF ADDING TO THESE CONCERNS THAT MAYBE THE FED DID TOO MUCH. THIS IS THE UNEMPLOYMENT RATE WHICH WE SAW OBVIOUSLY JUMP IN LAST FRIDAY'S REPORT AS WELL. BUT IT'S SORT OF ADDING TO THESE CONCERNS THAT PERHAPS THE FED HAS DONE TOO MUCH, PERHAPS THE INTEREST RATES ARE TOO RESTRICTIVE IN YOUR SEEING THAT SORT OF IN CONSUMER SPENDING, THAT BEING THE CONCERN. SOHE QUESTION NOW IS, WHAT DOES THE FED TO, WHAT DO WE DO WITH THIS? I TALKED TO MARK ZANDI, THE CHIEF ECONOMIST OF MOODY'S A SHORT TIME AGO, I ASKED HIM THE SAME QUESTION AND THIS IS WHAT HE TOLD ME. HE SAID, THE FED NEEDS TO START MOVING IF THEY DON'T, WE ARE GOING TO HAVE A PROBLEM. THE ECONOMY IS SPUTTERING AND IT'S GOING TO STALL OUT RECESSION FEELS MUCH MORE LIKELY. SO THE CLEAR MESSAGE IS THE FED'S GOT TO MOVE. >> LET'S PUT UP AGAIN SO WE CAN SEE WHERE THINGS ARE. THAT'S THE DOW MORE THAN 1,000 POINTS OF BIG ROUND, UGLY NUMBER. I THINK IT PERCENTAGE TERMS THE NASDAQ EVEN UGLIER RIGHT NOW, THE TECH HEAVY NASDAQ AND IN JAPAN OVERNIGHT THEY HAD RECORD DOWN DAY MORE THAN 10% DRIVEN LARGELY BY TECH RIGHT THERE? >> YES. WHAT'S HAPPENING? WHY YOU HAVE THE NASDAQ?BVIOUSLY THE TECH HEAVY NASDAQ. SO YOU THINK ABOUT NAMES LIKE APPLE, YOU THINK ABOUT NAMES LIKE META. SOART OF THIS AND THERE ARE A LOT OF DIFFERENT FACTORS. PART OF THIS IS PERHAPS THE MARKET WAS TO FROTHY AS INVESTORS MIGHT SAY, PERHAPS THIS IS A CORRECTION. I WILL SAY THAT I SPOKE TO AND THEN JUST TO POINT OUT THE JAPANESE YEN AS YOU POINTED OUT, WHAT WE'RE SEEING HERE IN THE U.s. EVEN WORSE OVERSEAS. AND THERE'S THIS EXPRESSION IN THE MARKETS THAT WHEN THE U.s. CATCHES A COLD, THE REST OF THE WORLD TOUCHES PNEUMONIA, RIGHT? AND PART OF THAT PERHAPS IS WHAT WE'RE ALREADY SEEING. BUT FOR PEOPLE WHO ARE WATCHING THIS AT HOME THINKING THINGS NOT JUST THE MARKETS, RIGHT? >> EXACTLY. >> I MIGHT COME NOW, HOL YOUR SEATS BUT FOR PPLE WHO ARE WATCHING THIS THINKING, OKAY ONE, WHAT DOES THIS MEAN TO ME? AND WHAT SHOULD I DO? A GREG MCBRIDE, WHO IS THE CHIEF FINANCIAL ANALYST AT BANKRATE. HE POINTED OUT, LOOK VOLATILITY IS COMMON AND A 10% PULLBACK TENDS TO HAPPEN ON AVERAGE EVERY 12 MONTHS, INVESTING FOR THE LONG TERM MEANS EMBRACING THESE PERIODS OF TURBULENCE EITHER TO BUY MORE. IF YOU'RE FEELING LIKE YOU HAVE THAT RISK APPETITE OR TO MAINTAITHE LONG-TERM PERSPECTIVE. SO HOLD ON, BUCKLE UP. >> IT'S ALWAYS WHAT THEY TELL YOU IS TO HOLD ON. I GUESS THE BIG QUESTION IS, WHEN THE FED MIGHT DROP RATES. >> IF I MIGHT PRODUCERS, IF YOU MIGHT GIVE ME ANOTHER MINUTE OR SO, I WILL SAY THAXT TIME THE FED IS SCHEDULED TO MEET IS MID-SEPTEMBER. BUT WHAT YOU ARE STARTING TO HEAR MUCH MORE OF IS DO WE SEE AN EMERGENCY CUT, A MEETING IN-BETWEEN MEETINGS EVEN THIS MORNIN JEREMY SIEGEL OF WARREN SAID AS MUCH ON CNBC. SO DO WE SEE THE FED NOT ONLY MOVE, BUT MOVE QUICKLY? >> ALRIGHT, WE WILL BE WATCHING THAT. WE'LL BE WATCHING THE MARKETS ALL MORNING LONG. RAHEL, I THINK YOU BETTER NOT GO FAR THE WAY THINGS ARE LOOKING RIGHT NOW. THANK YOU. VERY MUCH. ALL RIGHT. WITH ME NOW IS DEMOCRATIC CONGRESSMAN ADAM SMITH, WHO IS THE RANKING MEMBER OF THE ARMED SERVICES COMMITTEE. CONGRESSMAN, JUST ONE QUICK QUESTION. WHAT WE'RE SEEING, HOW THE MARKETS RIGHT NOW, HOW DO YOU FEEL WHEN YOU LOOK AT THESE NUMBERS DROP THIS MORNING ON WHAT ARE NOW GLOBAL FEARS ABOUT THE U.s ECONOMY WELL, I THINK IT'S TIME TO BRING INTEREST RATES DOWN. >> I MEAN, I THINK YOUR ANALYSIS OF YOUR GUESTS, THERE IS SPOT ON. WE'VE SEEN AN ECONOMY THAT HAS BEEN REMARKABLY STRONG COMING OUT OF COVID. THEY'VE BEEN PREDICTING RECESSIONS FOR SEVERAL WELL YEARS, HAVEN'T HAPPENED NOW, AND I THINK THE FEDS HANDLED THAT FAIRLY WELL, BUT INFLATION IS DOWN PRETTY CLOSE TO ZERO NOW, YOU HAVE OPPOSITE PRESSURES ON THE MARKET AND THE FED SHOULD RESPOND AND THEY WILL RESPOND GOD SO I THINK WE COULD WRITE, RIDE THROUGH THIS AND GET TO A GOOD PLACE. BUT LOOK AS YOU HEARD, THE GLOBAL ECONOMY IS VERY COMPLICATED AND VERY DIFFICULT. >> LOOK AND THAT'S THE CONCERN BEHIND DOOR NUMBER ONE. THE CONCERN BEHIND DOOR NUMBER T THIS MORNING IS WHAT IS HAPPENING INDLE EAST AS IRAN AND HEZBOLLAH HAD PROMISED TO RESPOND TO ISRAELI ACTIONS OVER THE LAST WEEK, WHAT IS IT AND YOU ARE THE RANKING MEMBER OF THE U.s ARMED SERVICES COMMITTEE. WHAT IS IT YOU THINK THE U.s NEEDS TO DO TODAY? TOMORROW THE NEXT DAY? DOING, WHICH IS TO PUSH FOR CALM AND PEACE AND NOT AN OVERREACTION IN THE MIDDLE EAST. SO THAT'S 12 IS ALSO WHAT WE'VE BEEN DOING WHICH IS MAKE SURE WE HAVE AN ADEQUATE DETERRENT CAPABILITY IN THE REGION AND SUPPORT FOR ISRAEL, CERTAINLY, BUT TO PROTECT OUR TROOPS AS WELL, TO MAKE IT CLEAR TO HEZBOLLAH AND IRAN AND OTHER ACTORS THAT THEY DON'T WANT TO ESCALATE AND LOOK, THEY DON'T WANT TO ESCALATE OR RON DOESN'T WANT A WAR, HEZBOLLAH DOESN'T WANT A WAR WE HAVE TO MAKE, TAKE ADVANTAGE OF THAT, BUT MAKE SURE WE HAVE A DETERRENT CAPABILITY IN THE REGION, THEN KEEP PUSHING FOR A PEACE DEAL. I MEAN, THE PATHWAY OUT OF THIS IS FAIRLY CLEAR FOR ISRAEL. GET TO A CEASEFIRE IN GAZA WITH THE RETURN OF THE HOSTAGES GET TO A FUTURE FOR THE PALESTINIAN PEOPLE. SO YOU CAN BUILD THE SECURITY AGREEMENT BETWEEN THE U.s ISRAEL, SAUDI ARABIA, THE UAE IN JORDAN, THAT HAS BEEN, WAS ENVISIONED FRANKLY BEFORE OCTOBER 7. THAT'S WHERE WE'VE GOT TO GET TO I THINK THE BIDEN ADMINISTRATION IS LEADING THE EFFORT FOR CALM AND TO GET TO THAT CEASEFIRE AND THOSE ALLIANCES BEING BUILT IN A WORD, HOW NERVOUS ARE YOU THIS MORNING ABOUT THIS? IT IS A VERY NERVOUS SITUATION. >> AND I THINK IT'S A HUGE PROBLEM AND THERE'S BIG RISK OF MISCALCULATION IRAN HAS STIRRED THE POT AND THEN THEY HAVE EMPOWERED ALL MANNER OF DIFFERENT FRED TERRORIST ORGANIZATIONS AND HA HEZBOLLAH AND THE HOUTHIS OR VARIOUS MILITIA GROUPS THROUGHOUT IRAQ AND SYRIA. >> AND THEY'VE TURNED THEM LOOSE AND THEY SEEM TO THINK THAT THEY CAN CONTROL THEM. WELL, THAT'S AN EXTRAORDINARILY RISKY THING TO DO WITH GROUPS LIKE T ARE SO FANATICAL IN MANY INSTANCES AND SECONDARILY, I'M NERVOUS THE FACT THAT PRIME MINISTER NETANYAHU NEEDS TO BEGIN TO OUTLINE A FUTURE FOR THE PALESTINIAN PEOPLE AND STOP UNDERMINING THAT FUTURE PARTICULARLY IN THE WEST BANK. AS WE GO FORWARD SO THAT WE CAN GET TO THAT PEACEFUL OUTCOME. SO THERE'S A LOT TO BE NERVOUS ABOUT. BUT I THINK THE U.s. LEADERSHIP IN THE REGION HAS PLAYED A VERY POSITIVE ROLE CONGRESSMAN, ONE OF THE REASONS WE LIKE HAVING YOU WANT IS YOU HAVE A TENDENCY TO TELL US WHAT YOU REALLY THINK WHICH COULD ULTIMATELY BECOME A PROBLEM FOR YOU OVER THE COMING DAYS? >> BUT I HEARD YOU SAY RECENTLY, YOU ACTUALLY UNLIKE MOST DEMOCRATIC MEMBERS OF CONGRESS, HAVE A FAVORITE IN TERMS OF A POSSIBLE RUNNING MATE FOR VICE PRESIDENT HARRIS. I'VE HEARD YOU SAY MARK KELLY, YOU THINK WOULD BE A GREAT CHOICE. WHY BEN SAY JOSH SHAPIRO? >> LET ME MAKE ONE THING PERFECTLY CLEAR. THE SIX PEOPLE THAT THE VICE PRESIDENT INTERVIEWED THIS WEEKEND, ANY ONE OF THEM WOULD BE OUTSTANDING AND NOW YOU'RE DOWN TO THE PICKING NITS PORTION OF THIS IS PEOPLE I LIKED THAT. I DON'T LIKE THAT ANY ONE OF THE SIX THAT DO YOU INTERVIEWED, INCREDIBLY TALENTED SUCCESSFUL, ACCOMPLISHED INDIVIDUALS WHO HAVE DONE A LOT WITH THEIR LIVES WHO WILL ADD A LOT TO THE TICKET AS SOON AS THIS ANNOUNCEMENT IS MADE, NO MATTER WHO IT IS, I'M GOING TO BE REALLY EXCITED ABOUT IT. >> I THINK SENATOR KELLY BRINGS THE MOST DO THE TICKET. ASTRONAUT, FIGHTER PILOT. HE AND HIS WIFE, GABBY HAD BEEN WORKING ON GUN SAFETY FOR A WHILE, BY THE WAY, GABBY IS AN INCREDIBLY COMPELLING FIGURE AS WELL, WHO WOULD PARTY WHAT OF THIS? AND I THINK MARK BRINGS THE RIGHT SENSIBILITY TO THE TICKET IN TERMS OF WE TEND NOT WE TEND TO LIKE RELUCTANT POLITICIANS IN AMERICA. AND MARK HAS BEEN A RELUCTANT POLITICIAN. HE GOT INTO POLITICS FOR THE SAME REASON MILLIONS OF OTHER PEOPLE BECAUSE OF DONALD TRUMP IN 2016 BUT HE I THINK HE HAS A VERY STRONG UNDERSTANDING OF THE AMERICAN PEOPLE ALL ACROSS THE BOARD. AND IF IT CAN BE A GREAT ADDITION TO THE TICKET. BUT ALL SIX WOULD BE OUTSTANDING VERY QUICKLY. >> THERE HAS BEEN A LOT OF CRITICISM. OR SOME CRITICISM I SHOULD SAY FROM PEOPLE INSIDE THE DEMOCRATIC PARTY OF GOVERNOR SHAPIRO OVER FOR THE LAST SEVERAL DAYS, SOME OF WHICH SEEMS AT LEAST LOOSELY CONNECTED TO HIS FAITH OR AT A IN THE PAST. WHAT DO YOU MAKE '. >> I THINK GOVERNOR SHAPIRO WOULD BE AN OUTSTANDING PAC AND GOVERNORS SHAPIRO'S POSITION ON ISRAEL AND THE MIDDLE EAST NEWLY ISN'T THAT DIFFERENT THAN I CAN SEE FROM THE POSITION OF ANY OF THE FIVE OTHER CANDIDATES AT THIS POINT. NOW, I DON'T THINK CRITICISM OF GOVERNOR SHAPIRO. I WAS WARRANTED IN THAT REGARD, BUT THE OTHER HAND, LOOK, EVERYO'S GOT THERE A PARTICULAR ISSUE. IN TERMS OF WHERE YOU COME DOWN AND YOU'RE GOING TO SAY, WELL, I THINK THAT PERSON IS CLOSER TO IT, BUT I WANT TO SAY TO ALL THOSE FOLKS VICE PRESIDENT HARRIS IS LEADING THIS TICKET. HER POLICIES ARE THE ONES THAT ARE GOING TO DRIVE WHOEVER SHE PICKS AS THE VICE PRESIDENT IS GOING TO SUPPORT THOSE POLICIES AND AGAIN, I THINK ALL SIX WOULD DO A GREAT JOB OF THAT.