New Delhi, April 7, 2025: The global stock markets are experiencing sharp declines, with experts predicting a potential repeat of the devastating “Black Monday” of 1987. This follows the recent rise in trade tensions after U.S. President Donald Trump imposed higher tariffs on imports, leading to retaliatory measures from China and other countries.
Trump’s decision to increase tariffs on various goods has sparked a trade conflict, which is now affecting global markets. Analysts warn that this could contribute to an economic slowdown worldwide, particularly impacting the U.S. economy as the year progresses.
The aftermath of these tariff hikes was evident last week, with significant losses recorded in stock exchanges around the globe. Markets in the U.S. and other countries saw major drops on Thursday and Friday, and with markets reopening on Monday, fears of further losses are mounting. Experts are particularly concerned about the possibility of a crash similar to the 1987 Black Monday, when the Dow Jones Industrial Average plummeted by 22.6%.
In India, the impact is already being felt, with the Sensex plunging by nearly 3000 points, or 4.7%, on Friday. The Nifty also witnessed significant losses. Analysts anticipate a further decline as the markets open on Monday, with a potential loss of over ₹19 lakh crore in just a matter of seconds.
The negative effects are not limited to India. Stock markets in Asia, including Hong Kong, Japan, and South Korea, have seen steep declines. Markets in Hong Kong, for instance, dropped by 10%, while major U.S. indices like the S&P 500 and Nasdaq also recorded losses of around 3%. Dow Futures have fallen by 900 points, signaling ongoing instability.
Market expert Jim Cramer has raised concerns about the current trajectory, warning that without intervention from President Trump, particularly through diplomatic talks with other world leaders, the situation could worsen and lead to a financial crisis akin to the one seen in 1987.
As global markets remain volatile, experts are calling for urgent actions from governments to prevent a further economic downturn. The coming days will be crucial in determining whether the markets will stabilize or spiral into a deeper crisis.
