This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Wall Street sinks
The Dow Jones Industrial Average and the S&P 500 suffered their sharpest declines in nearly two years, as growing concerns about the U.S. economy rocked global stock markets. The Dow plummeted over 1,000 points, while the S&P 500 and Nasdaq Composite fell 3% and 3.4%, respectively. Tech stocks were hit hard, with Nvidia and Tesla losing 6.4% and 4.2%. Apple's shares also declined 4.8% after Berkshire Hathaway slashed its stake. The yield on the 10-year Treasury note reached its lowest point since June 2023, while U.S. oil prices slipped to their lowest settlement since Feb. 5. 

Google monopoly
A federal judge ruled Google holds an illegal monopoly in the search and text advertising markets. The decision focused on Google's exclusive search arrangements on Android and Apple devices, which the court said reinforced its dominance. "Google is a monopolist, and it has acted as one to maintain its monopoly," Judge Amit Mehta wrote in the decision. The ruling stems from combined antitrust suits filed by the Department of Justice and several states in 2020.

Emergency rate cut?
Wharton finance professor Jeremy Siegel urged the Federal Reserve to make an emergency 75-basis-point cut in the federal funds rate following Friday's disappointing jobs data. He also suggested another 75-basis-point cut at the September meeting. Siegel believes the current fed funds rate "should be somewhere between 3.5% and 4%," citing the higher-than-expected unemployment rate and declining inflation as reasons for the cuts. "How much have we moved the fed funds rate? Zero," he said. "That makes absolutely no sense whatsoever."

Fed will 'fix it'
Chicago Federal Reserve President Austan Goolsbee said the central bank would react to signs of weakness in the economy and indicated that interest rates could be too restrictive now. "The Fed's job is very straightforward: maximize employment, stabilize prices and maintain financial stability. That's what we're going to do," Goolsbee told CNBC's "Squawk Box." "We're forward-looking about it. So if the conditions collectively start coming in like that on the through line, there's deterioration on any of those parts, we're going to fix it."

Asia rebound
Japanese stocks rebounded strongly on Tuesday after a historic drop, with the Nikkei 225 and Topix index gaining as much as 10%. The yen weakened 0.86% to trade at 145.27 against the dollar supporting export-oriented sectors. Honda and chipmaker Renesas Electronics jumped 14.7% and 19.1% respectively. Other Asia-Pacific markets also followed suit, recovering from recession fears triggered by weak U.S. jobs data. South Korea's Kospi jumped 3.3% and Australia's S&P/ASX 200 was up 0.4%. Hong Kong's Hang Seng index slipped 0.1%, while mainland China's CSI 300 dipped 0.1%. 

[PRO] Sayonara hot money
After the Nikkei 225's worst day since the 1987 Black Monday crash, fund manger Richard Kaye believes the current market turmoil presents a chance to invest in overlooked sectors as foreign investors exit certain positions. 

The bottom line

Monday's massive sell-off was the result of a perfect storm of factors, including carry trades, U.S. jobs data, recession fears and concerns about the Fed's slowness in cutting rates. The global rout included $1 trillion in mega tech losses. Despite calls for an emergency rate cut to stabilize the market, not everyone is convinced and this could be a buying opportunity.

Brian Belski, BMO chief equity strategist, considers the market correction to be normal and healthy. He advised investors to pick up high-quality tech stocks.

"You have been provided a gift here the last couple days, in terms of your Amazons, Apples, Googles, Microsofts," Belski said. "You absolutely, positively have to have exposure to these names."

"Now these names obviously got too cocky on the upside, with respect to their valuations, and now they have been humbled. Everybody needs a little humility in their life and we're seeing that in these names. We believe it's short term and reactionary to be chasing consumer staples and utilities now."

Main Street Research CIO James Demmert agreed that a "healthy correction" was "overdue" given recent high valuations.

He added, "Market fundamentals have actually improved in recent weeks, particularly the Federal Reserve's assurance that interest rate cuts are coming."

Chicago Fed President Austan Goolsbee's comments that the Fed would "fix it" if economic conditions deteriorate significantly could provide assurance for a jittery market. Wall Street's fear gauge spiked to as high as 65 during Monday's pullback, though later pulled back to about 38.

If futures are any indication, calmer minds could be taking hold. S&P 500 futures rose 0.9% Monday evening as Nasdaq 100 futures gained 1.2%.

"It's too early to say the low is in," wrote Keith Lerner, Truist's co-chief investment officer. "There has been damage done, and the repair process will likely take time. However, the risk/reward appears to be gradually improving as the market's bar for positive surprises resets lower."

— CNBC's Hakyung Kim, John Melloy, Sarah Min, Jeff Cox, Michelle Fox, Tanaya Macheel, Rohan Goswami and Dylan Butts contributed to this report.