1) Gatsby's parties have stopped as he has achieved his goal of reconnecting with Daisy. Daisy is affectionate towards Gatsby in front of others, though the presence of her daughter Pammy with Tom underscores her past with him.
2) Tom realizes Daisy and Gatsby's affair, making him angry and reckless. George Wilson suspects his wife Myrtle is also having an affair.
3) Daisy is torn between her past with Tom and present with Gatsby, ultimately choosing Tom and security over Gatsby and his criminal past. Myrtle is hit by a car, believed to be Gatsby's, and dies.