Black Monday 2.0? Why Markets Are Spiraling Amid Trump’s Tariff Announcement
April 7, 2025 — The global financial markets are trembling once again, and the term “Black Monday” is being revived with alarming frequency. Following former U.S. President Donald Trump’s surprise announcement of reciprocal tariffs on 180 countries, investors around the globe went into panic mode.As a result? A brutal sell-off in the market that has already erased more than $5 trillion in market value and brought back memories of October 19, 1987, which was the first “Black Monday.”
What Did Black Monday (1987) Stand For?
On October 19, 1987, the stock markets of the world collapsed unannounced. For one day only, the Dow Jones Industrial Average fell 22.6%, which was the biggest drop in any U.S. stock market history. It was felt in Europe, Asia, and Australia, as well as the S&P 500, which dropped almost 30%. It was the start of a worldwide financial fear, which is why this terrible event was called “Black Monday.”
Some of the reasons were overvaluation, automated trading, and political unpredictability around the world. Now that we’re in the present, the similarities are eerie.
Just what is Black Monday 2.0 all about?
The worst trade day in U.S. markets since the COVID-19 pandemic happened on Friday, April 4, 2025. Trump’s aggressive tariff move was the main cause. By Sunday, Dow Jones futures had dropped 1,405 points, or 3.7%. S&P 500 futures had dropped 4.3%, and Nasdaq-100 futures had dropped 5.4%.
Because of this sharp drop, market expert Jim Cramer warned of a possible “bloodbath” on Monday, April 7, which could be just like Black Monday.
“Donald Trump’s tariff tantrums are spooking global markets. The President must reach out and act fast to avoid another historic crash,” Cramer said in a television segment aired on April 6.
Adding fuel to the fire, Asian markets opened in the red, and the London Stock Exchange appeared poised for a similar fate. Pre-market trading already suggests S&P 500 futures are down by 4%, painting a grim picture for U.S. indices.
Bitcoin Crash: The Digital Domino Effect
Not only are traditional markets reeling — Bitcoin (BTC) is also tumbling.
After reaching an all-time high of $109,356 in January, Bitcoin has fallen by 30%, hitting a recent low of $76,600.
Technical indicators are flashing red: RSI is below 50, and MACD is negative—both classic signs of a bearish trend.
Analysts predict that the next strong support zone lies between $51,500 and $62,600, potentially setting the stage for further losses.
The BTC price appears to be following a five-wave Elliott Wave pattern, suggesting that we are currently in wave three, traditionally the sharpest decline in the sequence.
Expert Outlook: Is This the Next Black Monday?
While it may be premature to declare April 7 as the official “Black Monday 2.0”, the market signals are undeniably alarming:
Global sell-offs continue across continents.
Economic uncertainty tied to Trump’s tariffs is mounting.
Market sentiment is deeply negative, and investor fear is rising rapidly.
Bitcoin and other risk assets are showing no signs of recovery.
With global capital markets in retreat, economic analysts warn that if Monday’s trading follows current futures trends, April 7, 2025, could go down in history alongside the original Black Monday of 1987.
What Investors Should Watch This Week
U.S. Fed Response: Will the Federal Reserve step in with calming words or policies?
Trump’s Next Move: Will he walk back or escalate tariffs?
Corporate Earnings: Major U.S. companies are due to report this week. Poor results could worsen the panic.
Bitcoin Price Action: Continued declines could signal broader risk-off sentiment.
Conclusion
Market cycles are often driven by emotion, politics, and macroeconomic triggers—and right now, all three are colliding. Whether April 7 becomes the next Black Monday will depend on investor reactions, policy responses, and global economic data in the coming days.
For now, the best advice might be the oldest one: stay informed, stay calm, and don’t panic.
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Frequently Asked Questions about
What Did Black Monday (1987) Stand For?
On October 19, 1987, the stock markets of the world collapsed unannounced. For one day only, the Dow Jones Industrial Average fell 22.6%, which was the biggest drop in any U.S. stock market history. It was felt in Europe, Asia, and Australia, as well as the S&P 500, which dropped almost 30%. It was the start of a worldwide financial fear, which is why this terrible event was called “Black Monday.”
Just what is Black Monday 2.0 all about?
The worst trade day in U.S. markets since the COVID-19 pandemic happened on Friday, April 4, 2025. Trump’s aggressive tariff move was the main cause. By Sunday, Dow Jones futures had dropped 1,405 points, or 3.7%. S&P 500 futures had dropped 4.3%, and Nasdaq-100 futures had dropped 5.4%.
What Investors Should Watch This Week
What Investors Should Watch This WeekU.S. Fed Response: Will the Federal Reserve step in with calming words or policies?
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