applause, fear has set in on wall street and it's being felt across markets worldwide. japanese stocks suffer their biggest daily loss since 1987.

hello, i'm kristen sze. thanks for joining us. us markets closed one hour ago, marking the end of a day of big losses. the dow tumbled more than 1000 points and the broader market plunged 3% today, all part of a global market sell off. all major asian and european markets fell and fell substantially. the most prominent reason is fear that the us economy is in much worse shape than previously believed. perhaps that, based on friday's unexpected jump in the unemployment rate. so the dow plummeted 1033 points, closing at 38,703. the nasdaq dropped 576 points, while the s&p 500 closed down 160. abc news reporter melissa don explains what is happening. >> right from the opening bell stocks plunging the dow down 1000 at the start, the s&p 500 also falling sharply and signs of a slowing us economy is sending a signal across the

globe. the selloff starting in asia, japan's nikkei plunged 12%, its worst day since the black monday crash in 1987. investors reacting to friday's stock declines here and the news. the us employment rate hit 4.3%. >> that is historically low joblessness, but it does show that joblessness has increased more than half a percent since january, when unemployment was 3.7%, something that doesn't usually happen when the economy is healthy. a rise like that is historically a sign that a recession is imminent. >> many tech stocks leading the downturn today mainly companies relying on artificial intelligence, trade like alphabet, amazon, meta, microsoft and tesla. >> a lot of these companies, the magnificent seven and companies beyond that, they're spending a lot of money on artificial intelligence. but the payoff is a little bit further down the road. so i think, there's a broad array of companies that

are eventually going to make money in artificial intelligence, but for right now, it's very narrow. >> economic experts say all this signals an interest rate cut coming from the federal reserve to fend off a recession. so it's good news if you are carrying a large amount of credit card debt. >> and in fact, people are taking on more credit card debt, the average household has more than $7,000. if you go back to 2021, when the apr on average was 15%, that would cost you $90 in interest today. at today's rates, it's 126. >> a cut in interest rates would also help those looking to get a mortgage or car loan. the fed is set to meet again next month. melissa don, abc news, los angeles. >> the news is developing news out of west oakland, a number of shootings this morning following five people shot on sunday. details of the latest violence are still coming in. what we know is that police are investigating several shootings that occurred this morning in the area of eighth street and

center street in the lower bottoms neighborhood, roughly a block from the west oakland bart station. several victims were sent to the hospital. we are expecting to hear more from police, and we'll have updates on abc seven news at four, five and six. again this violence comes a day after five people were shot during an illegal sideshow in oakland. police say it happened on fruitvale avenue and macarthur boulevard just before 3:45 a.m. at least five victims showed up at different hospitals. we don't know their conditions and police have not released any information about a possible suspect in the south bay. we're expecting to hear from the san jose police department at any moment. after the killing of a community service officer, the first with the department to die in the line of duty. flags are at half staff in honor of cso long time fam csos typically help police by responding to lower priority calls. fam was working to control traffic saturday night at the scene of a car crash, when police say he was hit by a suspected drunk driver on

monterey road and palm avenue. a second cso was also injured. police arrested the driver at the scene but have not released the name yet. the a's have officially come to a deal to sell its portion of the coliseum. the team and the african american sports and entertainment group made that announcement this morning. the organization will buy the team's portion of the stadium site for $125 million. in a statement, the team said it's pleased to have reached this deal that can help provide substantial opportunities and benefits for oakland. the a's will temporarily move to sacramento next season ahead of a planned relocation to las vegas. new developments this afternoon, the supreme court said no to an attempt to delay former president trump's sentencing in his new york hush money conviction, the court dismissed a request from republican led states to postpone the september 18th sentencing until after the election. this means trump's legal proceedings will continue as scheduled, and he could be sentenced before the november

election. the ruling also keeps in place a gag order limiting trump's public comments about the case. who will be vice president kamala harris's running mate? who will win that sweepstakes? well, if anyone has insight, it's harris's longtime friend and adviser. california, us senator laphonza butler. we talk with her one on one about this major decision (woman) oh, come on! come on! (vo) fargo lets you do this: (woman) fargo, turn off my debit card. i found it! i found my card! (vo) and also, this: (woman) fargo, turn on my debit card! (vo) do you fargo? you can, with wells fargo.

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adviser, interim u.s. senator laphonza butler. senator butler, it's great speaking with you. in fact, this is my first time. i think so i appreciate you coming on the show. >> happy to be here. thanks so much. good to meet you. >> very good to meet you. of course, this is the perfect time to tap into your expertise because you've known vice president kamala harris a long time from her san francisco da days, and you served as a senior adviser on her 2020 presidential campaign, actually. so have you spoken to her since she became the presumed nominee, >> i have i've spoken with the vice president. she is in great spirits. i think she has a fighting attitude. and she is, doing, california proud. and i'm excited for what these next 93 days are going to mean. we get to have a conversation about the issues that are important to the american people, hopefully, without all of the hate and division, but truly expecting to

listen and learn of visions of the future and how we can create a stronger democracy for future generations. >> all right. and of course, you know, i want to talk to you more about that. but for now, can we focus on the next 24 hours because everybody is wondering who her running mate is going to be, and you might have the inside track. reuters is reporting the final selection is down to pennsylvania governor josh shapiro and minnesota governor tim walz. after the weekend of essentially speed dating, what do you think? who do you think she's going to go with? what is she prioritizing? >> you look, if those if that reporting is true and it's down to those last two, i'd say she's got two great options to choose from, both, have been governors who led in their states, in ways that have made them their communities, proud. and, both, i think, are prepared to center the needs of the american people. in partnership with the vice president, i got no inside track in terms of who she's,

going to choose, but i do, know for sure that the vice president thinks about the people of this country first. and foremost. and so she's looking for a governing partner who's going to share that priority, who she can deploy around the world to help to achieve global peace, and someone who is, going to be there in the situation room at tough times and help her to make tough decisions in the best interest of our nation. >> you, you know, talked about her fight that she's got. you talked about the division that we have in this country, talk about what qualities you think she has based on all that you've seen of her, that you've known her over the years for, that you think makes her the right person to be the top of the democratic ticket right now? both. i guess the winning part. right, and the leading part. >> look, i think the, you know, there's so many qualities about vice president harris that i have come to just, be in absolute awe of and admire so deeply, first and foremost is

that she is a person who cares, more than just about the words on the page or the policy that is written. she actually cares about how those words are going to impact everyday work and families. she wants to know, how policy is going to change the life of that mom who's trying to get to work and get her child to daycare and keep, affordable housing, over their heads, and how our seniors are going to pay for medication. and she wants to be an advocate. that's going to take on big banks who try to defraud them, or, you know, universities who, don't who rob them, but give them no education. she is centered on everyday people. and i have seen that time and time again, as this vice president has made choice after choice to be a fighter. on behalf of everyday people, i think it's important that the american people know

that she not only cares, but that she's tough and that she's decisive, people want elected leaders who are not just going to talk about, getting something done, but are going to actually put a plan forward to get it done, and i think there's a demonstrated record of vice president to, vice president harris to not just be just to be a talker, but also a walker, when she said that she was going to take on the big banks in california for california homeowners, she didn't just talk about it. she actually did it when she said, to, criminal gang enterprises in mexico, that they were going to pay, for trying to smuggle weapons and people into our country and into our community. she didn't just say it. she actually prosecuted them and sent them to jail, and so there is a record that this vice president has to run on at the american people can trust, and finally, that she's honest, if she says that she doesn't see a

pathway on something, she will tell you that straight out, she is a prosecutor who likes to collect the facts to present her case, and to make the strongest factual case possible to the jury, the american people. this is a case that she knows how to prosecute, and i'm confident that she has all of the skills and experience necessary to do just that. >> how do you think she's got to make her case about, you know, even if the people who aren't yet on her side believe she cares, in terms of her ability to come up with the actual solutions that will better people's lives. as you know, just today, the stock market took a huge plunge right after last friday's disappointing jobs report. and trump, of course, is calling it the kamala crash. but even before this, when the jobs numbers were kind of rosy, americans were still not feeling so great because of rising prices. so what do you think she has to put out there? >> look, i think that, we all have to, remember that, you know, this is a global economy

that is still very, very fragile. one, when the former president was in office and chose to do little to nothing, to stabilize our economy, to find vaccines, but instead chose to give unwise advice to the american people to disengage, and be an isolationist from, countries around the world. those are decisions that that we are still, living with as a country. and as an economy. and so what i think, we can expect, from future president harris if she is able to, be successful in november, our policies again, that center, strengthening our economy, strengthening, strengthening the economic shared economic prosperity of all families, centering her economic policies on working families, building and strengthening our middle class, investing in creating access to more capital for small business owners and entrepreneurs.

invest. finishing the implementation of the historic investments. in the climate crisis that has begun, under the biden-harris administration, there will be again, implementation, work that she's got to do so that the american people can actually begin to feel, the true impacts of these, historic pieces of legislation positioning our country for the future. and she's got to do what she has said already. she's going to continue to take on price gouging. she's going to try to find solutions on housing affordability and work with hopefully a democratically controlled senate and house to not just talk about what they what can be done, but to actually be able to get something done to change the trajectory of not only, people's everyday people's lives, now, but the future generations that are coming after senator

>> i want to turn the conversation to you a little bit. i know you prefer talking about the vice president and her campaign, but you you know, you've been interim senator for ten months. i think you've got a few months left to go, it's been really tough on capitol hill, as we all know. it's very divided. and none of the bills you introduce have passed. but i want to ask you, what is it that you would like to do in the time you have remaining, what are you most proud of? >> i am, i'm most proud that in my office we've been able to truly center those future generations. i have, vibrant youth advisory council who has talked to me on a regular basis about everything from tiktok and artificial intelligence to mental health, to the economic futures, that they dream of for themselves and their future families, and to be able to give to the next generation of policymakers, of, elected officials, this kind of inside

experience, as to how these issues are debated and discussed, is, is, i think, the greatest gift that i will be able to offer. it is a divided government. i am not likely going to be able to get significant legislation passed, but i want to make sure that whoever california sends to washington as its next senator knows, that they are to responsible and accountable, not just to generations of the past, but to future generations who expect the most. >> well, senator laphonza butler, i really enjoyed this conversation, and i hope we'll get to talk again soon. >> i look forward to it. thank you. take care. >> all right. mostly mild and sunny outside. this is the embarcadero in san francisco. but you know, triple digits could be coming back to some cities this week. spencer christian will

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little gray and overcast for much of the day and cooler than you would expect. the day before a heat spike to be. right now we're looking at temperatures in our inland areas in the mid to upper 80s for the most part, but the heat is going to build quickly tomorrow. in fact, a heat advisory will be in effect for the santa clara valley tomorrow from 10 a.m. to 10 p.m. the risk of heat related illness, of course, will increase with this hot weather tomorrow. so here's what we're expecting. these are our forecast headlines. heat spike tomorrow. triple digit highs inland. the heat will ease just a little bit on on wednesday. still though warm to hot. and later in the week we'll see a bit of cooling relief coming our way. but for tomorrow look for high temperatures around 99 degrees at fairfield and antioch. livermore 98 102 up at ukiah. it's likely that 1 or 2 of those places we're now listing as high as tomorrow at 98 or 99 will hit 100. so this is going to be triple digit heat tomorrow in the hottest inland spots for sure. now as we look at the accuweather seven day forecast you see on wednesday, not much change. we're calling for 98 degrees generally in the warmest inland locations. we could see triple digits two days in a row in the hottest of hot

spots. but then on thursday starts to cool down significantly. and as we get to the weekend, it will be much, much cooler and much more comfortable and no threat to our health posed by the weather. >> kristen spencer, thanks so much. all right. more news. nancy pelosi opens up about the attack on her husband, paul, and about joe biden dropping out of the 2024 presid

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and the race for the white house with abc news anchor george stephanopoulos. >> do you open? of course, with the attack on your husband from a couple of years ago, the harrowing events of january 6th? it does seem like we've gone off the rails in many ways. >> well, it has no place in our society. i mean, we are a democracy. we have differences of opinion and politics is a place where you have nonviolent uh- differences of opinion. and this has, gotten to a place we have to back off of. and it is, i think, what the public would want as as as kamala has said, we're better than this. we deserve better than this, and we just have to make a decision. we have to make a decision to be the country that we are honoring. the vision of our founders for this great country, the sacrifice of our men and women in uniform to protect our freedom, our freedom, and again, the aspirations of our children

to be safe and we have all of that. and i believe in the goodness of the american people. i believe that's what they do want. so we just have to back off what is out there and what was sad about my husband's situation is he's not very political. they were after me and i feel guilty about his paying the price. but in addition to that, in addition to that, all families, we don't want families to feel at risk because they're someone in their family is engaged in public service. >> it has been a dizzying summer in politics. you know, we saw the withdrawal of president biden, an historic decision by him. a lot has been written and said about your role in all of this. i know you've denied making any phone calls about this, but how would you describe your role in that whole episode? >> well, i have the greatest respect for the president. i think he will be one of the most consequential. joe biden will be most consequential, viewed as

one of the most consequential presidents in our country. i want him his legacy to be recognized, preserved. it's our legacy to in the congress. we worked together for a great legacy for our country, great agenda for working families, for the kitchen table issues, for america's working families. so i wanted that to be, recognized and he was the one who could recognize it the most. so we just wanted him to make the decision on how we best preserve that legacy. >> and also and the only way to do that was for him to step down. >> well, that would be up to him to decide it was always about him and why i said i didn't make calls because people said i was burning up the airwaves. no, it wasn't the only person that i spoke to about this was the president. other people called me about what their views were about it, and but i rarely even returned a call, much less initiated one. >> what is the most important?

what's the best decision for kamala harris to make right now for her running mate? >> well, first, i'm excited about her candidacy and i, i think that all of the candidates for vice president are excellent, and any one of them would be great, it's a difficult decision because they're all so great. it is the most important decision for her to make, not just about who can help win, but who can help serve. and lead, whose competence she trusts. she has confidence in and trust. and so we're all eager to hear who that may be. but it is again, necessary for us to have again, the candidates, the message, the enthusiasm on the ground to get out that vote to win the election. >> you just gave us another lesson in the art of power and the way you answered that question. thank you for coming. >> nancy pelosi's book, the art

of power is available tomorrow. remember, abc7 news is streaming 24 seven. get the abc7 bay area app and join us whenever you want. wherever you are. thanks so much for joining us today. world news tonight with david muir starts right now. and i'll see you back here at 4:00 with the latest news, weather and more. have a good one. tonight, debby takes aim at georgia and south carolina after slamming florida. communities are bracing for potentially historic flooding. the impact to last for days up and down the eastern sea board, disrupting thousands of flights. and the worst day for stocks in two years. what's behind the