Wall Street is nervous. Big losses hit the U.S. stock market last week. Now experts fear a repeat of Black Monday from 1987. That was the worst day in stock market history. Stocks dropped over 22% in one single day. Today, markets are falling again, and some say this crash could be just as bad. The Stock Market Hit of last week has traders worried. U.S. stock futures are down again. If things don’t turn around, Monday could bring even bigger losses than last week.
Global markets suffer heavy losses over the weekend
On Sunday night U.S. time, markets in Asia started falling fast. Japan’s stock index dropped 8%. Australia went down 6%. South Korea lost 5%. Taiwan nearly hit a 10% drop. Singapore fell 8.5%. China and Hong Kong also went down sharply. These big losses happened just hours after U.S. stock futures opened. The S&P 500 dropped 4.2%, the Dow fell 3.5%, and the Nasdaq lost 5.3%. This shows more trouble could be coming when the U.S. markets open on Monday morning.
New tariffs from Trump blamed for the market panic
President Trump launched new tariffs on Saturday. These taxes hit nearly all goods coming into the U.S., except from Mexico and Canada. Starting April 9, even more tariffs will hit 57 major countries. That includes trade partners like China and the European Union. Investors are worried. They fear the tariffs will slow the global economy and hurt American businesses. Last week’s $6.6 trillion Stock Market Hit shows just how big the fear is.
Retirement savings drop as panic spreads
Many Americans saw their retirement accounts lose value fast. 401(k) plans and other investments took a hard hit. Traders fear a recession could be next. Even though Trump says he didn’t mean to cause panic, the markets reacted anyway. He said on Sunday, “Sometimes you have to take medicine to fix something.” He also said he won’t make any trade deals until the U.S. stops having big deficits with other countries.
Trump speaks to reporters and issues warning to China
On Sunday, Trump flew back from a golf event in Miami. While on Air Force One, he talked to reporters. He said world leaders want to make trade deals. But he won’t agree unless the U.S. stops losing money in those deals. He warned that China could face the worst damage. “The deficit is so big,” Trump said. “It would have been unsustainable.” He also posted on his social media page that tariffs are the only fix. He said they are bringing billions of dollars into the country.
Market may bounce this week, but experts say don’t count on it
Some market experts say stocks may rise a little this week. But they don’t think the gains will last. One expert said the bull market is over. That means stock prices may not go back up for a while. Another expert said the timing was bad. Trump’s tariff news came just as companies started reporting earnings. That added more fear. Some stocks have already dropped over 17% since February. That’s close to bear market levels.
The Fed watches closely but holds off on action
The Federal Reserve is the group that controls U.S. interest rates. Jerome Powell, the Fed’s chairman, gave a warning on Friday. He said Trump’s tariffs may raise prices and cost people their jobs. The Fed had planned to cut interest rates twice in 2025. But Powell now says they won’t do anything yet. They want to see how bad the damage is before they act. Raising rates helps fight inflation. Lowering them helps the economy grow. For now, the Fed is waiting.
Big companies already feel the heat from new tariffs
Some major companies are already making changes. On Friday, Nintendo delayed the launch of a new game system due to the Stock Market Hit. On Thursday, car maker Stellantis—owner of Dodge—announced layoffs. These companies say the tariffs are hurting their business. More companies could follow. It’s a sign that the trade war is already shaking up the world economy.
