caroline: from bloomberg's world headquarters in new york, i am caroline hyde. romaine: this is a special edition of "bloomberg markets." special day here. we had finally got a bit of a pullback in the market that a lot of people said was overdue. the nasdaq composite down about 5%, as well as the nasdaq 100. the russell stocks finished the day down about 3%. caroline: some of the most loved names fell the hardest. the faang index come off the worst since march at one point.

tesla come over the past three days, falling 18%. we have not seen that since the march selloff. we are kind of entering correction territory. joe: we saw a really incredible run-up. for more, joining us, katie cry filled. a lot of people saying this was due, there were signs of this happening. why didn't you tell us yesterday? this could have saved a lot of pain. >> it is a little frustrating because today it seems there is no real catalyst except for how stressed things god. tech isn saying overvalued for weeks and months. today is the first day that it has actually traded like it. 100's worste nasdaq drop since march.

the high flyers were dragging the index down. trying to press people for an , we have beenday seeing some worrisome signals from the options market in the last week. the fix and the nasdaq volatility index have been rising along with the index. you did see those warnings in the past week. hadeems like that dynamic to break at some point. caroline: the joy of hindsight maybe we could have seen it coming. in terms of where we go next, you talk about volatility, the fact that you should not really see volatility and stocks go higher. for once, we seem to change that correlation. is that likely to be sustained?

broken, it it is will be interesting if we see it now reverse, maybe volatility comes down a little bit. we were seeinghy this play out, there has been such huge demand for call options. forcesu see that, that dealers to scramble, to buy those shares, to recalibrate their hedges. that forces the stocks higher. on the downside, that forces market acres to unwind their hedges at increasing speed, which is why maybe we are seeing such a loss today. we could see that volatility, down. might take until after the weekend to see that. romaine: i thought the moving yields was interesting.

there was talk that we had seen treasuries go as far as they can go and had basically kind of hit a floor on yields. it did appear that a lot of people were willing to embrace the 10 year yields as well as the 30 year. as it is kind of refreshing to see treasuries rally off of this. the narrative has been that tech is the new haven. treasury has been getting a lot of hate with yields so low. thatjust goes to show treasury rallies back all the way to 60 basis points from historically low levels, it just goes to show that this is the hedge of choice when you see people really scramble for havens, treasuries are still the assets to go to.

romaine: great that you could join us to break it all down. coming up, we will talk about the markets but also the economy. discuss the big u.s. unemployment report with lisa brooks of michigan state university. this is bloomberg. ♪ is is bloomberg. ♪

market uproar, u.s. stocks tumbling today by the most in almost three months. and, is it profit taking ahead of the long weekend or are we now looking forward to what economic picture is being painted. tomorrow, the nonfarm payrolls.

joe's favorite day of the month. the data was pretty murky. joe: there were some weird things with the calculations. but it is not great. there are a pinch of ways to slice this data. adjusted,ally seasonally adjusted, seasonally adjusted with the extra change for gig workers. we are at extremely high levels, higher than at any point during the last crisis. we have sort of stalled out. towant to see this get down precrisis levels of layoffs. still very high. nonfarm payrolls report with this level of labor market churn. --tro will be interesting romaine: it will be interesting

to see what the makeup of those jobs are. obviously, a lot of homebuilding, a lot of construction. 56.9.e drop down to about two points lower from july. anything above 50 is expansion. you are starting to see a pickup in arts and entertainment, health care. jobs,keup of these whether this will be a rebound led by the goods or services sectors well i guess spell out what we see with regards to wages. joe: joining us with more insight is lisa cook of michigan state university. served onof -- she president obama's council of economic advisors. how concerned are you that the recovery in the labor market is already stolen, especially as

you look at -- already stalling especially when you look at data? lisa: i am very concerned. the continuing claims are more than 27 million above where they were a year ago. i think the thing i am most concerned about is the dire and far-reaching consequences for the economy as a result of the expiration of the unemployment including july 31, for retail sales. that is why i would be concerned. we are seeing of economy support for an fueled by the consumer. without some sort of bipartisan focus on a relief package, how much worse could things get? lisa: things could get a lot

worse. walmart reported a fall in sales. athink we probably don't have more diversified retail store that walmart or amazon. that as a result of the extension of additional unemployment benefits, walmart saw a decline in retail sales. i think this is particularly concerning because walmart is especially indicative of the people who would have the highest marginal propensity to who would be most apt to spend. gdp, fuelst fuels consumer spending. that is why i am really concerned. if walmart is sounding the alarm, i think that every other

evenler is sounding an higher alarm. romaine: going back to the jobs market, even though we have seen a lot of jobs created coming out of this, we have seen a lot of companies announce furloughs. we have seen financial companies also say they will scale back. there is some concern that some of the job losses will affect lower wage workers and we will whiteto see more at the collar level. lisa: absolutely. i think that this could become permanent. if i am looking at this as a person new studies small businesses, i am even more worried. to 41% to 55%5% over three months of business is

reporting that they were permanently closing. these are small businesses under 500. once that are advertising on yelp, for example. businessest small employ half of americans. so, this is extremely concerning if they have no jobs to go back to. i will say one more thing about how it is concerning. often, the smallest businesses, the newest businesses are the most innovative. they are new. definition, they are innovative in some way. this is where innovation comes from for long-term growth. i would worry because the businesses permanently failing means that we don't get the benefit from their innovation that adds to long-term growth.

that is a huge concern. we don't get the employment for we don't get the innovation that adds to economic growth. another thing that i am quite concerned about is the self-employed. a tried andship is true path to accumulation of wealth and to the middle class. couldould dry up and it dry up very quickly. if we are seeing these high numbers and if they sustain themselves. 55% of businesses. i think this is extremely concerning. thing.uld say one more job losses are not just job losses. there are more than 12 million people who have lost their health insurance. because health insurance is provided by the employer.

knock on lot of effects. the last things that individuals or workers need is to have their health insurance taken away in the middle of a pandemic. joe: tomorrow, when we get the number, expected 13 5 million jobs. unemployment rate expected do fall just below 10%. what is going to be sort of the first thing that you would look deeperee some of the underlying trends happening right now and the labor market? lisa: i am going to look at the long-term unemployed. you definitely want to see how many have moved from the temporary layoff to the permanent layoff. and we want to see who is going to be spending, therefore. the measures that have been

that, the executive order the president announced want be enough to support those individuals who are unemployed. to $200, that will be enough support those who are unemployed. supportant reduction in not necessarily available. am going to be i looking at. one aspect of churn that would be concerning from a macro economic standpoint. at: lisa cook, professor michigan state university, thank you so much. coming up, we speak with the facebook vice president of global communications, nick clegg. this is bloomberg. ♪

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caroline: facebook has announced it is expanding policies to guard against voter suppression and misleading posts ahead of blockection, as well as campaigns from submitting a new ad in the week leading up to election day. emily: joining me right now, nick clegg, vice president of global affairs and communications at facebook. a number of announcements. the key one is that facebook will stop taking new political ads a week before election day. why just a week. someot forever as companies like twitter have done? nick: it is an unprecedented step. this is an unprecedented election unprecedented times require unprecedented measures.

the reason we are doing it for the last week, at the very tail ads arehe campaign, if run that are particularly false, misleading, or arising, we don't have time for those in the media or campaigns to contest what is said. we tried to create this guardrail in the final week of the campaign so that any ads that are run -- the targeting can be adjusted by the campaigns. they mobilize voters. ads.hey can't run new which if they were running the last minute, they're just simply would not be the time for them to be properly scrutinized. that is why i have put in this measure. crucially, it is important for your viewers to appreciate that now arerun on facebook

launched in probably the most transparent version of its kind anywhere. so that anyone can see who has paid for and at, -- pay for an ad. maximum transparency combined with this new limitation on no new ads being released in the final week of the campaign. emily: mark zuckerberg today made no indication that the policy on the content of political ads is changing. what about critics saying that this is piecemeal or the big problem, that facebook allows misinformation or even lies to persist? -- no majork: silicon valley seeks to try to adjudicate on things politicians say about each other.

political speech is always sort of one candidate exaggerating their virtues and exaggerating the vices of their opponent. majoris a reason that no player in silicon valley has tried to enter into that. we remove -- we have community standards against violence, eight, all sorts of other things . posts for instance from the president in recent weeks and months. on the whole, we think that politicians in an open democracy should be able to say what they want to voters and therefore what they want about each other. one of the significant additional announcements we made last few hours, we

will apply much more aggressive labels to post. efficacy,ubt on the the legitimacy of voting methods. we are asserting very clearly for our users that, for instance , voting by mail is a trustworthy way of voting in the election. emily: how concerned are you about election night, that the results could be contested, that there could be chaos? how much of a risk does facebook face? nick: i think it is a very real risk. many more people are likely understandably in a pandemic to vote by mail and mail ballots tend to be counted later than in person but -- in person votes. there is likely to be a discrepancy between the immediate picture and what happens in the days and weeks

following it. we will be starting very soon using our voting information center very actively in people's feeds, constantly repeating to people that this time they should not expect an immediate result. people should be accustomed to the idea that it might take quite a bit longer. candidateswhere declare victory before the results of the election are certified, we will label that to make sure that our users know that those declarations of victory are premature. emily: the markets selling off today. facebook down 4%. what is your take on what is driving this? emily: --nick: i am not a great market commentator. i don't think it would help remotely if i commented on the ups and downs of the markets. we concentrate particularly in

this election season to make sure that our users continue to derive benefit, joy, and utility from our apps. they do so in huge numbers around the world, also playing a role in safeguarding the integrity of the u.s. and many other elections around the world. emily: joy may be hard-to-find. we have a pandemic of a frost in u.s.-china relations. mark's appearance on capitol hill, how are these events affecting your position on tech regulation? nick: we at facebook feel that their need to be new rules for the internet. facebook is only 15 years old. it is a new technology that has erupted in recent years. like all new technological evolutions or revolutions, they

need to be framed through rules adopted in democratic debate and by lawmakers accountable to voters. some of the things that we just discussed. what role should social media play in elections? how should google ads be deployed or not? all of those things are areas that we believe in the long run it should not be for private companies to make those decisions. the rules need to be made by the rule makers and they are democratically elected by the people of this country and other democracies around the world. clegg, facebook vice president of global affairs and medication. thank you for -- affairs and communication. thank you for coming on the show. technology" is next.

romaine: this is bloomberg. ♪

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the big events are back. xfinity is your home for the return of live sports. emily: welcome to "bloomberg technology." i'm taylor riggs in for emily chang. u.s. stocks sinking deep in the red today as investors got a long-awaited pullback. mostasdaq tumbled by the since march in the s&p 500 had the worst day since june. and while, the vix briefly jumped over 35. also the highest since june. with more on today's action, let's get straight to it with abigail doolittle.