(NewsNation) — President Donald Trump’s so-called “Liberation Day” tariffs have not been favorable to the stock market.
The major market indices — the Dow, Nasdaq and S&P 500 — have plunged, and fears of a recession are rising.
Following Trump’s announcement of tariffs on nearly 90 countries, a two-day sell-off ensued and the Dow saw its worst two-day loss since the COVID-19 pandemic.
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The 2020 pandemic ranks among the biggest stock market crashes in United States history. One of the most infamous, however, is “Black Monday,” the largest single-day percentage decline in history.
Nearly 40 years later, could another Black Monday be on the horizon?
What is ‘Black Monday’?
Traders work frantically on the floor of the New York Stock Exchange as stocks dropped more than 500 points on Oct. 19, 1987, in New York. (AP Photo/Peter Morgan, File)
Quite different from Black Friday, when shoppers take advantage of post-Thanksgiving deals, Black Monday marks the day Wall Street crashed with the largest one-day stock market decline in history.
On Oct. 19, 1987, the Dow dropped 22.6% in one day, causing a market chain reaction. The S&P 500 also dropped by 20.5%, according to Bankrate.
Significant crashes have also occurred on Oct. 29, 1929, also known as Black Tuesday; during the dot-com bubble crash between 2000 and 2002; during the Great Recession from 2008 to 2009; and during the pandemic in March 2020.
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Could another ‘Black Monday’ come in 2025?
Jim Cramer, a financial analyst and host of CNBC’s “Mad Money,” has warned of a second Black Monday if Trump does not reverse course on his global tariffs.
Cramer has been predicting the scenario on social media for days.
“If President Trump does nothing and if Europe retaliates then we the odds jump for an October 87 replay,” Cramer, an investor himself, wrote Friday.
“Look i don’t want a repeat of ’87 of course,” he said in another post. “But i traded during that period and remember each day well.. We knew to sell.. and we are proud we did. But we felt like idiots because the week BEFORE the crash was so bad and we were late to sell.”
At the close of the trading day Friday, the Dow was down 2,231.07 points. The S&P 500 was down 154.63 points, and the Nasdaq was down 962.82 points.
