Midday Roundup: China's slumping economy drags Wall Street down

Wall Street’s wild ride. Stock market trading yesterday started with a sell-off: The Dow Jones Industrial Average plunged more than 1,000 points. A slowdown in China triggered the slump—part of a global wave of selling. And that jolt to the global market worried some on Wall Street who already fear the U.S. market is a bubble ready to burst. Analysts have warned for a while the market couldn’t continue its long bull run. But by the end of trading yesterday, the Dow regained some of its lost ground, finishing 588 points down for the day. This morning, the market started with a 300-point rally on confidence sparked in part by China’s move to cut interest rates after another day of stock drops in its exchange. The Shanghai composite index fell 7.6 percent for a total 22-percent loss for the last three days. China’s economy is still growing, but at a rate much slower than it has enjoyed for the last few years. Prime Minister Li Keqiang told state television news the fundamental stability of the country’s economy has not changed, despite the market volatility.

Backing down. After days of escalating tension, North and South Korea agreed to back away from the increasingly thin red line separating them from full-blown conflict. Under an agreement announced yesterday, South Korean leaders have stopped broadcasting from the “Voice of Hope” loudspeakers that blare propaganda and K-pop across the border. And North Korea expressed regret for two land mines that injured several South Korean soldiers, although Kim Jong Un’s regime stopped short of issuing the full apology the South initially wanted. Both sides agreed to pull back their military forces from state-of-war readiness. The agreement did not include any explanation for what started the recent saber rattling. South Korean officials had said the North’s soldiers fired across the border at the loudspeakers.

What were they thinking? Parents dropping off their students at Old Dominion University in Norfolk, Va., got an unwelcome surprise as they drove past one of the school’s fraternity houses. A banner hanging from the Sigma Nu house read, “Rowdy and Fun. Hope your baby girl is ready for a good time.” Messages spray-painted on two other banners read, “Freshman daughter drop off,” and “Go ahead and drop off mom too.” After at first claiming fraternity members were not responsible for posting the messages, the national Sigma Nu organization admitted it looked like its members “may” have been involved. School officials suspended the group pending an investigation. “I am outraged about the offensive message directed toward women that was visible for a time on 43rd Street,” university President John R. Broderick said in a letter sent to the community and posted on Facebook. “Our students, campus community, and alumni have been offended.”

Terrorist intent. The 26-year-old Moroccan man disarmed by passengers as he tried to attack a train traveling from Amsterdam to Paris on Friday posted “terrorist content” to his Facebook page, a company spokesman said. Facebook deleted the account belonging to Ayoub El-Khazzani for violating its content policies. Police initially thought an accomplice might have deleted the account to protect El-Khazzani. The man’s family, who live in Spain, expressed surprise at his arrest and said they did not believe he could be involved with terrorism. But French prosecutors say his internet activity showed clear “terrorist intent.” El-Khazzani told investigators he only intended to rob the train to get money for food. When he was arrested, he was carrying a Kalashnikov rifle, a pistol, and a knife. Although three American friends have gotten credit for disarming El-Khazzani and thwarting the attack, another American is being hailed as an unsung hero. Mark Moogalian, who has lived in Paris for two decades, is recovering in a hospital after El-Khazzani shot him in the back during the scuffle.

WORLD Radio’s Mary Reichard contributed to this report.