CNBC anchor Jim Cramer forecasted a market downturn akin to the infamous “Black Monday” of October 1987, which ultimately did not occur.
Cramer alerted his audience on “Mad Money” that a crash resembling “Black Monday,” marked by a drastic 22% drop in the Dow Jones Industrial Average in one day, was imminent. However, the Dow Jones Industrial Average only declined by 0.91% on Monday, whereas the S&P 500 slumped 0.23%, and the Nasdaq Composite actually increased by approximately 0.10%. (Related: “They’ve never lost 1,000 points”: Fox’s business host remains astonished by Wall Street losses)
clock:
“We exist in one of three scenarios. Are you okay? We might experience a swift Bear Market similar to that of Covid-2020, we could witness a Bear Market reminiscent of 2000, or we might see a significant event like October 1987’s ‘Black Monday,’ when the market experienced a sharp decline over consecutive days, resulting in a 22% drop.”
“If the president chooses not to engage with those countries and businesses adhering to regulations and rewarding them, we could see a scenario like 1987, where the market plunged following three days of trading, culminating in a 22% drop on Monday,” he added. “We won’t need to wait too long. I’ll know by Monday.”
Market indexes spiked by 8% briefly on Monday after CNBC circulated misinformation suggesting Trump was thinking about a 90-day tariff suspension. However, White House spokesperson Caroline Leavitt clarified to the outlet that it was “false news.”
The market then plummeted by 3.5% almost immediately after the misinformation was uncovered, as reported by Bloomberg podcaster Joe Weisenthal.
U.S. stock markets remained under scrutiny for the second consecutive day on Friday after President Donald Trump declared he had eliminated tariffs on Wednesday. The Dow Jones Industrial Average and S&P 100 saw their steepest declines since June 2020, with drops of 5.5% and 5.8%, respectively.
The NASDAQ Composite also dropped 5.6% on Friday.
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