Black Monday 2? Market meltdown fuels growing fears of a repeat crisis
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The financial world is holding its breath as the specter of “Black Monday 2” looms over Wall Street, threatening to eclipse the infamous 1987 market crash.
The alarm bells are ringing louder with each tick of the market clock, and for those of us with a lifetime of savings on the line, the stakes couldn't be higher.
Wall Street is preparing for what could be another 1987 "Black Monday"-style crash tomorrow–with analysts warning last week's market plunge might appear mild in comparison.
While President Donald Trump asserted Sunday that world leaders are "dying to make a deal," US stock futures and Asian markets plummeted in response.
The three major US indices - the S&P 500, Nasdaq, and Dow - are projected to open Monday down as much as 6%. Experts warn last week's "$6.6 trillion wipeout" may have been only the start of the market turmoil.
In early Monday Asian trading (Sunday night US time), markets collapsed across the region:
CNBC's Jim Cramer warned the US may be "barreling toward another Black Monday," referencing 1987's historic 22.6% single-day crash–worse than 2008 or COVID market turmoil.
"If the president doesn't reach out and reward countries and companies that follow the rules, then the 1987 scenario... where we dropped for three days and then plunged 22 percent on Monday, becomes highly relevant," Cramer cautioned Saturday.
Source: New York Post / Youtube.
The sell-off has already devastated retirement accounts (401(k)s), with traders fearing tariffs could trigger a global recession.
The current market turmoil has been triggered by a series of aggressive tariff announcements from President Donald Trump, targeting nearly 90 countries.
Also read: "Liberation Day" shock: Discover the 2 surprising tariffs Trump just unveiled on April 2nd!
President Trump firmly stated his position on trade imbalances: "But I said we're not going to have deficits with your country. We're not going to do that because, to me, a deficit is a loss. We're going to have surpluses, or we're, at worst, going to be breaking even."
He specifically called out China, warning it "would be the worst in the group because the deficit is so big and [it] would have been unsustainable."
Reiterating this stance on Truth Social, Trump posted: "We have massive Financial Deficits with China, the European Union and many others. The only way this problem can be cured is with TARIFFS, which are now bringing Tens of Billions of Dollars into the USA."
Market analysts remain divided on the outlook.
Source: CBS Evening News / Youtube.
The S&P 500's 17% plunge from its February 19 peak has brought it perilously close to bear market territory (20% decline).
Siebert Financial's Mark Malek declared "The bull market is dead," adding that while "we might see some gains in the next few days... they're not going to be sustainable." Malek criticized the tariffs' timing, coinciding with earnings season and amplifying investor nerves.
Administration officials defended the policy on Sunday talk shows, with Treasury Secretary Scott Bessent asserting on “Meet the Press” there was "no reason" to expect a recession.
Interactive Brokers' Steve Sosnick offered cautious optimism, "Sometime this week it's probably inevitable that we will have an up day."
Federal Reserve Chair Jerome Powell issued a stark warning Friday about Trump's new tariffs, predicting they will cause "higher prices, job losses and lower growth."
As the central bank faces difficult decisions navigating the economic fallout, Powell emphasized they won't act until the full impact becomes clear, despite Wall Street hoping for more than the planned two 2025 rate cuts amid growing recession concerns.
Source: PIX11 News / Youtube.
The Fed's interest rate decisions, which affect borrowing costs across the economy, typically rise to combat inflation and fall to stimulate growth.
Meanwhile, global corporations are already adjusting strategies as Trump's tariffs continue to destabilize world markets.
In earlier news: Trillions lost in a day–Wall Street plunges amid growing global tensions
Have you reviewed your investment strategy in light of the recent market downturn? Do you have tips for weathering financial storms? Share your insights and questions in the comments below!
The alarm bells are ringing louder with each tick of the market clock, and for those of us with a lifetime of savings on the line, the stakes couldn't be higher.
Wall Street is preparing for what could be another 1987 "Black Monday"-style crash tomorrow–with analysts warning last week's market plunge might appear mild in comparison.
While President Donald Trump asserted Sunday that world leaders are "dying to make a deal," US stock futures and Asian markets plummeted in response.
The three major US indices - the S&P 500, Nasdaq, and Dow - are projected to open Monday down as much as 6%. Experts warn last week's "$6.6 trillion wipeout" may have been only the start of the market turmoil.
In early Monday Asian trading (Sunday night US time), markets collapsed across the region:
- Japan's Nikkei: down 8%
- Australia: -6%
- South Korea: -5%
- Taiwan: nearly -10%
- Singapore: -8.5%
- Hong Kong: -10
- China: almost -5%
There are growing fears on Wall Street of a “Black Monday 2” due to sinking stock futures and the escalation of Trump tariff fallout. Image source: KTLA 5 / Youtube.
CNBC's Jim Cramer warned the US may be "barreling toward another Black Monday," referencing 1987's historic 22.6% single-day crash–worse than 2008 or COVID market turmoil.
"If the president doesn't reach out and reward countries and companies that follow the rules, then the 1987 scenario... where we dropped for three days and then plunged 22 percent on Monday, becomes highly relevant," Cramer cautioned Saturday.
Source: New York Post / Youtube.
The sell-off has already devastated retirement accounts (401(k)s), with traders fearing tariffs could trigger a global recession.
The current market turmoil has been triggered by a series of aggressive tariff announcements from President Donald Trump, targeting nearly 90 countries.
Also read: "Liberation Day" shock: Discover the 2 surprising tariffs Trump just unveiled on April 2nd!
President Trump firmly stated his position on trade imbalances: "But I said we're not going to have deficits with your country. We're not going to do that because, to me, a deficit is a loss. We're going to have surpluses, or we're, at worst, going to be breaking even."
He specifically called out China, warning it "would be the worst in the group because the deficit is so big and [it] would have been unsustainable."
Reiterating this stance on Truth Social, Trump posted: "We have massive Financial Deficits with China, the European Union and many others. The only way this problem can be cured is with TARIFFS, which are now bringing Tens of Billions of Dollars into the USA."
Market analysts remain divided on the outlook.
Source: CBS Evening News / Youtube.
The S&P 500's 17% plunge from its February 19 peak has brought it perilously close to bear market territory (20% decline).
Siebert Financial's Mark Malek declared "The bull market is dead," adding that while "we might see some gains in the next few days... they're not going to be sustainable." Malek criticized the tariffs' timing, coinciding with earnings season and amplifying investor nerves.
Japan stocks plummet as markets prepare for more tariffs. Image source: Bloomberg Television / Youtube.
Administration officials defended the policy on Sunday talk shows, with Treasury Secretary Scott Bessent asserting on “Meet the Press” there was "no reason" to expect a recession.
Interactive Brokers' Steve Sosnick offered cautious optimism, "Sometime this week it's probably inevitable that we will have an up day."
Federal Reserve Chair Jerome Powell issued a stark warning Friday about Trump's new tariffs, predicting they will cause "higher prices, job losses and lower growth."
As the central bank faces difficult decisions navigating the economic fallout, Powell emphasized they won't act until the full impact becomes clear, despite Wall Street hoping for more than the planned two 2025 rate cuts amid growing recession concerns.
President Trump's tariffs are expected to lead to higher prices, job losses, and lower economic growth, with the Federal Reserve indicating it will not make any immediate interest rate changes in response to the unfolding situation.
Source: PIX11 News / Youtube.
The Fed's interest rate decisions, which affect borrowing costs across the economy, typically rise to combat inflation and fall to stimulate growth.
Meanwhile, global corporations are already adjusting strategies as Trump's tariffs continue to destabilize world markets.
In earlier news: Trillions lost in a day–Wall Street plunges amid growing global tensions
Have you reviewed your investment strategy in light of the recent market downturn? Do you have tips for weathering financial storms? Share your insights and questions in the comments below!
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