Meaning: This sentence describes how people were watching the rescue from the street.
Choice of Words: People are human beings. Watch means to look at something or someone with attention. Street is a public road in a city or town.
Alternative Expressions
People are watching from the street.
Meaning: This means that a group of people are currently looking at something or someone from the street. It's like saying, A group of people are standing on the side of the road, looking at something right now.
Choice of Words:People refers to a group of individuals. Are watching indicates an ongoing action. From indicates the starting point of an action or movement. The street is a public road in a town or city. When you put them together, "People are watching from the street" describes a group of individuals currently observing something or someone from the roadside.