Are these people having fun?
Yes, they are.
They are blowing noise makers because it is midnight.
Confetti is falling on them. Confetti is small pieces of colored paper.
What are these people doing?
They are listening to music, dancing, and waving sparklers.
They are celebrating New Year's.
Do cities have fireworks on New Year's?
Yes, many cities do have firework displays on New Year's Day.
Fireworks are a great way to celebrate a new year.