"Black Monday" replayed, with US stock market plunging by 22%? "Big Mouth" Jim Cramer issues warning.

Tariff clouds looming, US stocks plunged for two consecutive days, with the Dow Jones plummeting nearly 4,000 points, but the market's panic seems to be getting stronger. On Saturday, veteran market commentator and CNBC host Jim Cramer issued a stern warning about President Trump's comprehensive tariff policy announced on April 2nd. He believes that the market may re-enact the 1987 "Black Monday" crash, and investors should closely watch the market trends on Monday. Although strong job reports may provide some cushion, the escalation of the trade war has plunged global markets into a state of high anxiety. Alarm bells ringing: Epic crash may occur again Cramer said, "If the President does not try to reconcile with rule-abiding countries and companies, then the scenario of '1987... where we fell for three consecutive days and then fell 22% on Monday, is very likely to happen again." He further emphasized, "We will soon know the result, at the latest by Monday." "Black Monday" refers to October 19, 1987, when global stock markets crashed in a single day - the Dow Jones Industrial Average plummeted 22.6%, marking the most severe single-day percentage drop in history. Specifically, the market first fell for three consecutive days, with a 3.81% drop on October 14 (Wednesday), a 2.39% drop on October 15 (Thursday), and a 4.6% drop on October 16 (Friday), followed by a weekend, and then a single-day crash of 22% on what became known as "Black Monday." At that time, concerns about rising interest rates, overvalued stocks, geopolitical tensions, and the rise of computerized program trading all combined to create a perfect storm. Once selling began, algorithms triggered more selling, leading to a snowball effect. Trump's new tariffs spark global trade war concerns According to CCTV news, on April 2nd, Trump announced a 10% comprehensive tariff on all imported goods, and will impose stricter taxes on specific countries beginning on April 9. The market reacted strongly to this news. After a 1679-point drop on Thursday, the Dow Jones plummeted another 2231 points on Friday - marking the worst two-day decline since the early days of the COVID-19 pandemic. The Nasdaq index fell by 962.82 points (5.8%), and the S&P 500 index fell by 322.44 points (5.97%). "It is very difficult to temporarily build a new, weaker world order," Cramer said, "We are trying desperately, but so far, I haven't seen any signs that could avoid the October 1987 scenario. Those who bought at the bottom have already gotten stuck in it." Nevertheless, Cramer also pointed out that the strong jobs report may serve as a cushion: "This makes the possibility of a crash not necessarily leading to a recession lower." Hold cash "I will control my anger, solely because I experienced the crash of '87, and I got through it safely. I held cash during the crash. I know that feeling," he added. Facing the current volatile situation, investors need to closely monitor the market trends in the coming days, especially the performance on Monday. Cramer's experience in '87 indicates that holding cash may be a strategy to cope with a potential market crash. At the same time, the strong job data provides some support to the market, implying that even in the event of a sharp decline, it may not directly lead to an economic recession. This article is reproduced from "Wall Street Watch" with the author being Pan Lingfei; GMTEight editor: Huang Xiaodong.