CNBC host Jim Cramer is warning that President Donald Trump’s sweeping tariffs could trigger a market crash reminiscent of 1987’s “Black Monday.” The historic single-day collapse saw the Dow Jones Industrial Average plummet 22.6% on October 19, 1987.
Cramer fears that if the president doesn’t try to reach out and reward countries and companies playing by the rules, the market could follow a similar path. He referenced the 1987 scenario where the Dow fell three days before a massive 22% decline on Monday.
The recent announcement of tariffs has caused significant market volatility, with the Dow plummeting 2,231 points over two days. The Nasdaq and S&P 500 also suffered significant losses. Cramer notes that while a strong employment report is a positive factor, it may not be enough to prevent a potential crash from leading to a recession.
Cramer’s concerns are valid, given the complex web of factors driving market sentiment, including rising interest rates, high valuations, and geopolitical tensions. The imposition of tariffs has intensified global fears of a prolonged trade war, which could have far-reaching consequences for markets worldwide.
Source: https://finance.yahoo.com/news/jim-cramer-offers-blunt-warning-202922176.html