CNBC host Jim Cramer has forecasted a potential repeat of the infamous ‘Black Monday’ of 1987 in the coming week due to tariffs imposed by Donald Trump on various countries. “If the president fails to engage with and reward the countries and companies adhering to the rules, then we might see a situation reminiscent of 1987…specifically the scenario where we experienced three days of decline followed by a staggering 22% drop on Monday,” Cramer remarked. “The outcome won’t be long in coming; by Monday, we will have clarity on the situation.”
“Constructing a new, weaker world order on the fly is challenging. There’s frantic effort underway, yet nothing seems to eliminate the possibility of an October ’87 scenario. So far, those who have tried to bottom-fish are in a precarious position,” Cramer tweeted on X.
The market continued to struggle for two consecutive days, Thursday and Friday, following Trump’s tariff announcement on Wednesday. The Dow Jones Industrial Average experienced a staggering decline of over 2,200 points after China responded with severe retaliatory tariffs against President Trump’s initiatives. The Dow nosedived by 2,231 points, just one day after facing a 1,679-point plunge—its worst trading session since the onset of the COVID-19 pandemic in 2020.
On Friday, the technology-heavy Nasdaq fell by 962.82 points, or 5.8%, while the broad S&P 500 index was down 322.44 points, or 5.97%.
China’s foreign ministry condemned the U.S. for employing tariffs as tools of “extreme pressure and self-interest,” arguing that such “economic bullying will ultimately backfire.” “We do not desire conflict, nor do we fear it. Engaging China through pressure and threats is not the right approach,” announced the foreign ministry in an extensive statement.
Trump held firm on his tariffs stance, encouraging Americans to “stay tough,” indicating that the tariffs will bring challenges. “China and numerous other nations have treated us exceedingly poorly,” Trump stated, accusing them of using the U.S. as a “whipping post,” while reiterating his justification for the tariffs, which he claims are necessary due to other countries “taking advantage” of the United States.
