Jim Cramer, a well-known financial commentator and host of CNBC’s “Mad Money,” has raised alarms about a potential market crash when trading resumes on Monday, April 7.
Cramer expressed concerns that the upcoming trading session might resemble the infamous “Black Monday” of 1987, which saw one of the largest single-day crashes in stock market history.
Cramer’s apprehension stems from the escalating trade tensions involving US President Donald Trump. He believes that the direction of the markets will largely depend on how the President handles the ongoing trade disputes. If Trump remains unyielding and fails to mitigate the economic fallout, Cramer fears a market plunge similar to the one in 1987. He stressed that the President needs to take steps to support countries and businesses that comply with trade rules to prevent a severe downturn.
The recent market turmoil follows a rough trading session in the US, marking the steepest drop since the COVID-19 pandemic. The Dow Jones Industrial Average (DJIA) fell by 5.50%, losing over 2,200 points to close at 38,314.86. The Nasdaq Composite also took a hit, dropping more than 900 points, a loss of 5.82%, while the S&P 500 ended the day down 5.97%, settling at 5,074.08 points.
Critics of the administration’s approach, including Senator Elizabeth Warren, have voiced frustration over the market’s instability, arguing that the government’s policies are amplifying financial risks. Warren criticized Elon Musk, who has been involved in the Trump administration’s efficiency initiatives, accusing him of undermining consumer protection measures.
The looming crisis echoes memories of Black Monday, October 19, 1987, when the Dow Jones suffered a record-breaking 22.6% plunge in a single session. According to the US Federal Reserve, this event marked the most significant one-day market crash since the Great Depression and highlighted the emerging concept of globalization, which later shaped various regulatory changes.
As the financial world braces for the reopening of markets, investors are left speculating whether decisive action from the White House can avert another historic downturn. Cramer’s warning serves as a stark reminder of the volatility that can arise from economic and political uncertainty.
Author
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
