"Black Monday" repeats, US stocks plummet 22%? "Big Mouth" Jim Cramer issued a warning

Tariff clouds loom, U.S. stocks have plunged for two consecutive days, with the Dow Jones Industrial Average plummeting nearly 4,000 points, but the market's panic sentiment seems to be intensifying.On Saturday, veteran market commentator and CNBC host Jim Cramer issued a stern warning regarding the comprehensive tariff policy announced by Trump on April 2. He believes the market may repeat the "Black Monday" crash of 1987, and investors should closely monitor market movements on Monday. Although a strong employment report may provide some buffer, the escalation of the trade war has plunged global markets into a state of heightened panic.Alarm sounded: Epic crash may repeatCramer stated that if the president does not attempt to reconcile with rule-abiding countries and companies, then "the scenario of 1987... where we fell for three consecutive days and then crashed 22% on Monday, is very likely to repeat." He further emphasized, "We will know the outcome soon, 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 fell by 22.6%, marking the worst single-day percentage drop in history.At that time, concerns over rising interest rates, high valuations, geopolitical tensions, and the rise of computerized program trading created a perfect storm. Once selling began, algorithms triggered more selling, leading to a snowball effect.Trump's new tariffs raise global trade war concernsAccording to CCTV News, on April 2, Trump announced a comprehensive 10% tariff on all imported goods, with stricter tariffs to be implemented on specific countries starting April 9.The market reacted strongly to this news. After a drop of 1,679 points on Thursday, the Dow fell another 2,231 points on Friday—marking the worst two-day decline since the early days of the COVID-19 pandemic. The Nasdaq index dropped 962.82 points (5.8%), and the S&P 500 index fell 322.44 points (5.97%)."Temporarily constructing a new, weaker world order is very difficult," Cramer stated, "We are trying madly, but so far, I have not seen any signs that can avoid the scenario of October 1987. Those who bought at the bottom are already in deep trouble."Nevertheless, Cramer also pointed out that a strong employment report could serve as a buffer: "This reduces the likelihood that a crash will necessarily lead to a recession."Hold cash"I will control my anger, but only because I experienced the crash of '87 and ultimately came through it safely. I held cash during the crash. I know what that feeling is," he added.In the face of the current turbulent situation, investors need to closely monitor market movements in the coming days, especially Monday's performance.Cramer's experience from '87 suggests that holding cash may be a strategy to cope with a potential market crash. At the same time, the strong performance of employment data provides some support for the market, indicating that even if a significant drop occurs, it may not directly lead to an economic recessionRisk Warning and DisclaimerThe market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at one's own risk