There is growing concern about the “Black Monday” market crash over President Donald Trump’s tariff hike and the resulting backlash from China.
Major stock indexes plummeted on Monday after Wall Street went through its worst two days since last week’s pandemic. Nasdaq composites fell by 5.82%.
CNBC host and market analyst Jim Kramer repeatedly warned on Saturday about the devastating “Black Monday” collapse of October 19, 1987.
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Trump sent the market to Tailspin on April 2 when he announced a widespread new tariff on almost all US trading partners. He said the US will impose a 10% “baseline” tariff on virtually all imports and higher taxes on key trading partners, including China, the European Union and Vietnam.
China fought back on Friday, imposing a 34% tariff on US imports, matching the 34% Trump imposed on Chinese goods. The immediate acceleration of losses in markets around the world follows China’s response, and economists have warned that the trade war could cause a global recession.
What do you know
“If the president doesn’t try to reach out to these countries and businesses that play by the rules and reward them, the 1987 scenario is the most enthusiastic scenario that fell three days and then fell 22% on Monday,” Cramer told the show on the show on Saturday.
“We don’t have to wait too long. We know by Monday.”
Tokyo’s Nikkei 225 index fell 7.2% by noon on Monday, according to the Associated Press. Hong Kong’s Hangsen fell 10.7%, while the Shanghai Composite Index lost 6.3%.
But Trump, who played golf over the weekend and attended the event at Florida properties, shrugged from Fallout and told reporters on Sunday that he “have to take medication to fix something.”
Meanwhile, US futures are a reliable indicator of how stocks work when the market is open – even early on Monday.
S&P 500 futures fell about 3.3% early on Monday, while Dow Jones’ industrial average futures fell more than 1,000 points or 2.68%.
What people are saying
Jim Kramer wrote to X on Saturday: “It’s difficult to build a new, weak, world order on the spot. I’m trying so hard, but I haven’t seen anything that took the 87 October scenario off the table yet.
Harvard economist Lawrence Summers, the Treasury Secretary to Democratic President Bill Clinton, wrote to X on Sunday: Future troubles and people should be very careful. ”
Billionaire hedge fund manager Bill Ackman, Trump supporter and billionaire hedge fund manager, wrote to X:
Entrepreneur and conservative political commentator Trump ally Patrick Bett David said in a video posted on X on Sunday:
Asked about the falling market, President Donald Trump told reporters on Air Force 1 on Sunday:
White House trade adviser Peter Navarro said the administration’s trade approach will lead to “the biggest stock market boom ever seen.”
He said: “People just sit down and find that market bottom and don’t shake up by media panic.”
What’s next?
Trump has not suggested that he will abolish or tweak tariff hikes in the coming days.
When they open on Monday morning, all eyes are in the US market.
