Global markets are on edge as fears of a 1987-style crash, dubbed ‘Black Monday 2.0,’ gain momentum following U.S. President Donald Trump’s sweeping tariffs on dozens of nations. The financial chaos triggered by these trade restrictions has prompted comparisons with the infamous Black Monday of 1987.
What happened in 1987?
On October 19, 1987, global markets collapsed, with the Dow Jones Industrial Average plunging by a record 22.6% in a single day. It remains the largest one-day percentage drop in history. The causes were complex: program trading, valuation concerns, global economic jitters, and a wave of panic selling.
Why are experts worried now?
Financial analyst Jim Cramer has warned of an impending repeat. “This is heading toward Black Monday 2.0,” he said, pointing to Trump’s refusal to pull back on tariffs and the escalating global trade war. Trump’s 10% baseline tariff — with reciprocal hikes hitting as high as 34% — has sparked retaliations from China and other major economies.
Markets have already started reacting violently. Last week, the U.S. markets lost $1.8 trillion in just two days, with the Dow and Nasdaq falling 5–6%. On Monday, panic spilled into Asia. Japan’s Nikkei 225 and Hong Kong’s Hang Seng each fell 8% in early trade.
‘Orange Monday’ trends on X (formerly Twitter)
In a satirical twist, social media has dubbed the current market plunge “Orange Monday” — a nod to Trump’s iconic branding and a play on “Black Monday.” One viral meme read, “Orange is the new Black Monday,” capturing the mood of worried investors and mocking the administration’s defiance amid global economic backlash.
While history doesn’t always repeat, it often rhymes — and this week’s financial spiral has all the makings of a storm.
