Wall Street braces for worst day in 28 years as Donald Trump tariffs promise bitter medicine
New York City: Wall Street is steeling itself for a potential repeat of 1987’s Black Monday as markets reel from President Donald Trump’s sweeping new tariffs. Despite Trump’s claims that world leaders are “dying to make a deal", US stock futures plummeted overnight, with the S&P 500, Nasdaq, and Dow Jones Industrial Average all poised to open down as much as 6% on Monday. Analysts warn that last week’s historic $6.6 trillion wipeout — the worst two-day decline in US market history — may only be the beginning.
CNBC’s Jim Cramer raised alarms over the weekend, suggesting the US could be hurtling toward a Black Monday-style collapse, referring to the 22.6% single-day crash in 1987 — still the worst in modern history. “If the president doesn’t reach out and reward countries and companies that follow the rules, then the 1987 scenario… becomes highly relevant,” Cramer warned. The sell-off has already devastated retirement accounts, with fears mounting that Trump’s tariffs could trigger a global recession.
US stock futures, which indicate market direction at opening, swung wildly overnight. At one point, S&P 500 futures were down 4.2%, Dow futures fell 3.5%, and Nasdaq futures plunged 5.3% before recovering slightly. The declines follow Trump’s announcement of a 10% baseline tariff on all US imports (excluding Canada and Mexico), with higher levies set to hit 57 major trading partners, including the EU, starting April 9.
ALSO READ
BLACK MONDAY: Taiwan and Japan markets plunge as all signs point to bloody weak ahead
MAGA revolt brewing as Donald Trump's tariffs likened to 'a pile of rakes'
Trump dismissed concerns about the market turmoil, telling reporters aboard Air Force One, “Sometimes you have to take medicine to fix something.” He insisted that trade deficits must be eliminated before any deals are made, singling out China as the “worst in the group” due to its massive trade imbalance.
Federal Reserve Chair Jerome Powell warned Friday that the tariffs could lead to higher prices, job losses, and slower growth, complicating the Fed’s plans for interest rate cuts. While some analysts predict a short-term bounce, Siebert Financial’s Mark Malek declared, “The bull market is dead.” Others, like Interactive Brokers’ Steve Sosnick, acknowledged that a temporary rebound is likely but cautioned that a lasting recovery could take weeks.
Major corporations are already adjusting strategies amid the turmoil, and Treasury Secretary Scott Bessent downplayed recession fears on Meet the Press, insisting there was “no reason” to expect one.