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Gatsby initially begins throwing his lavish parties, open to all comers, in the hopes that one day Daisy might walk through his door. He knows very well that she lives right across the water, so the hope is not irrational. While Daisy doesn't come, her cousin Nick does, as does her friend Jordan; through them, Gatsby reunites with his beloved.

After reuniting with Daisy, Gatsby no longer needs to throw the parties but continues to do so. One evening, for the first time, Daisy and Tom attend together. Gatsby can see—as can Nick—that Daisy disapproves of the guests and is not having a good time. After that, the parties end.

Without Daisy's approval, the parties mean nothing to Gatsby, so he dispenses with them.

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Gatsby stops his extravagant parties because he has finally captured Daisy, and because he now desires privacy.

Interestingly, Gatsby has dismissed every one of his servants. He explains to Nick that Wolfsheim has urged him to use people he knows for servants because they will be discreet about Daisy's visitations. At these words, Nick reflects,

So the whole caravansary of servants had fallen like a house of cards at the disapproval in her [Daisy's] eyes.

The new servants never go into West Egg; instead, the food and other items are delivered. "I wanted somebody who wouldn't gossip." Gatsby tells Nick. It is also apparent to Nick that Gatsby only held such lavish parties in the hope that Daisy would attend them; however, the parties did not draw Daisy to him, and Gatsby himself derived little pleasure from them.

After having finally resumed his affair with Daisy, Gatsby feels that he has recaptured the past, but now he has the one thing that he lacked before: wealth and possessions, those things that are so meaningful to her.

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Why does Gatsby stop giving parties in The Great Gatsby by F. Scott Fitzgerald?

There are two reasons why Jay Gatsby no longer throws his famous, elaborate parties in The Great Gatsby by F. Scott Fitzgerald. It is safe to say that he did not enjoy his own parties, since he rarely appeared at them; he must have had a reason for throwing them, then. Jordan tells Nick that, just like Gatsby built his magnificent mansion right across the water from Daisy, he threw his extravagant parties hoping that Daisy would one day attend one of them. She never does.

After Gatsby and Daisy are reunited, Daisy does show up to one of Gatsby's parties by invitation with Tom and Jordan. While Tom loves it because he meets all kinds of women (potential mistresses), Daisy does not enjoy herself. She would prefer to spend time alone with Gatsby, which she manages to do even during the party; the couple sneaks off to Nick's house for a bit. If Daisy had loved his parties, of course Gatsby would continue them; however, since she does not and he already has Daisy (thus he has no need to use the parties to lure her to him), the parties cease.

The other reason the parties stop is connected to this first. Once Daisy starts coming over, Gatsby feels the need for more privacy, and of course he manages that the same way he manages everything else in his life--in a grand fashion. He fires all the servants and discontinues his parties. The beginning of chapter seven says

It was when curiosity about Gatsby was at its highest that the lights in his house failed to go on one Saturday night--and, as obscurely as it had begun, his career as Trimalchio was over.

Cars arrive and find that, for the first time, there is no party at Gatsby's. It takes Nick a while to figure this out, and when he goes over to visit Gatsby, he is met by servants who are not only strangers to him but appear to be anything but actual servants.

What becomes clear is that Gatsby is trying to protect Daisy and their relationship. He tells Nick:

"I wanted somebody who wouldn't gossip. Daisy comes over quite often--in the afternoons."

The new servants are a questionable sort, recommended by Meyer Wolfshiem. Clearly they are involved in some kind of underworld business and are hiding out at Gatsby's house; however, Gatsby does not much care because he has everything he wants: Daisy. 

While it can be said that Gatsby threw his parties because he wanted to flaunt his wealth or some other reason, those were only secondary to the illusion he had about reconnecting with Daisy. As soon as he had her, nothing else mattered to him, so the parties stopped. 

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