CNBC host Jim Cramer’s prediction of a “Black Monday” style market crash on Friday did not come to pass, although the week has been marked by significant market volatility.
Cramer had warned viewers of his show “Mad Money” that a crash similar to the 1987 “Black Monday,” which saw the Dow Jones Industrial Average plummet roughly 22% in a single day, was a possibility. He tied this prediction to market reactions to President Trump’s tariff policies.
READ: Kentucky Senator Rand Paul: Debt Vote Undercuts DOGE Push For Fiscal Responsibility
However, on Monday, the Dow Jones Industrial Average only fell by 0.91%. The S&P 500 saw a smaller decline of 0.23%, and the Nasdaq Composite actually showed a slight increase of approximately 0.10%.
Cramer’s warning was based on the market’s behavior in the days following the tariff announcement.
He had stated, “We’re in one of three modalities, okay? We could be in for the grips of a quick bear market à la the COVID 2020 model. We could be in for a 2000-style bear market, where tech was laid to waste for a very long time,” and the most concerning, “Or it might be the big kahuna. That’s the one of October of 1987, where the market went down hard for three days — Wednesday, Thursday, Friday — and then it went even harder on a day we call ‘Black Monday,’ where the market fell 22%.”
He further emphasized the urgency of the situation by saying, “If the president doesn’t try to reach out and reward these countries and companies that play by the rules, then the 1987 scenario, the one where we went down three days and then down 22% on Monday has the most cogency. We will not have to wait out too long, will we? We’ll know by Monday.”
READ: Supreme Court Justice Roberts Temporarily Halts Order To Return Deported Kilmar Abrego Garcia
It’s worth noting that the market experienced a brief but dramatic 8% surge on Monday due to false reports circulating on CNBC and multiple mainstream media outlets about a potential 90-day tariff pause from President Trump. These reports were quickly debunked by White House press secretary Karoline Leavitt, leading to a subsequent 3.5% drop in the market within seconds, as reported by Bloomberg podcaster Joe Weisenthal.
The U.S. stock market had already seen sharp declines on Friday, with the Dow Jones Industrial Average and S&P 100 each experiencing their steepest falls since June 2020, dropping 5.5% and 5.8%, respectively. The Nasdaq Composite also fell by 5.6% on Friday.
PREVIOUS REPORT: CNBC host and market commentator Jim Cramer has warned of a potential “Black Monday” stock market crash, reminiscent of the 1987 record collapse, if President Trump does not modify his current tariff plan.
Cramer expressed his concerns, emphasizing that the Dow Jones Industrial Average’s 22.6% single-day drop in 1987 could be repeated after a severe two-day sell-off that followed the announcement of Trump’s tariffs on a wide range of imports.
“If the president doesn’t try to reach out and reward these countries and companies that play by the rules, then the 1987 scenario… the one where we went down three days and then down 22% on Monday, has the most cogency,” Cramer said on his show on Saturday.
READ: Treasury Secretary Bessent Dismisses Recession Fears Despite Tariff Concerns
He added, “We will not have to wait too long to know. We will know it by Monday.”
President Trump’s announcement of a 10% tariff on all imports to the U.S., with higher levies planned for major exporters, triggered significant market turmoil.
In the two days after the “Liberation Day” announcement, the Dow plunged by 3,910 points, marking the worst two-day loss since the pandemic. The S&P 500 also fell by nearly 6%, and the Nasdaq experienced a similar decline. Total market losses wiped out $6.6 trillion in value.
Experts cautioned that continued mass sell-offs could push the U.S. into a recession.
While Cramer had previously supported Trump’s tariff plan, he indicated he would withdraw his support if his bleak Monday prediction came true.
READ: California Sen. Adam Schiff Says Harris Lost Race Due To Being ‘Status Quo’ Candidate
“If President Trump stays intransigent and does nothing to ameliorate the damage that I saw these last few days, I’m not going to be constructive here,” Cramer stated. “And if Europe moves against our fabulous tech companies next week, then I will be furious.”
Cramer’s market predictions have a mixed track record. While he is known for his market analysis, he has also been criticized for some stock picks, leading to the creation of an Inverse Cramer Tracker ETF in 2023, which bets against his recommendations.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
