‘Black Monday’ stock market crash, new depression in the digital age

Till date, we have always linked the word ‘Black’ with ‘Black Friday ‘ which refers to a busy shopping day after Thanksgiving when people rush into markets to grab discounts and flash deals. But now, a different kind of talk is going on regarding the word ‘Black’day which has nothing to do with shopping.

‘Black Monday ‘ is referred to October 19,1987, when the Dow Jones Industrial Average sank by 22.6% in a single day.The crash had worldwide repercussions, and markets across the globe lost trillions in value. It’s one of the worst single-day market crashes in history.

On Friday, April 4, 2025, the US stock market had its worst day since the Covid-19 crash. More than $5 trillion was erased in a matter of hours. Stocks plummeted, and volatility soared.

The reason was that President Trump’s tariffs on nearly 180 countries have triggered fears of a global trade war. As countries react, businesses are under pressure, and investors are worried.

On April 6, 2025, Jim Cramer, an American market commentator, said that if Trump doesn’t pull back on tariffs or at least reward countries that play fair, we might see a crash as bad as in 1987, when markets collapsed without warning. He said, “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.”

Experts raised caution over a possible Black Monday 2.0 after US markets witnessed their biggest drop since the Covid-19 crash on April 4, wiping out over $5 trillion in value. For now, it’s a waiting game, with hopes that history won’t repeat itself. The India VIX, a measure of market volatility, jumped over 56%, suggesting rough days ahead.