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.
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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.
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“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.
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