Is the 2025 Market Crash a Repeat of Black Monday 1987?

Market Crash 2025: Déjà Vu of Black Monday 1987?

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: April 07, 2025

Summary: M are comparing the 2025 market crash to Black Monday 1987 — but are they really the same?

Experts and investors are worried whether the recent market meltdown is a replay of the 1987 Black Monday horror. The stock market suffered greatly at the time, and now that Trump has announced tariffs, things appear to be going badly once more.

What Happened in 1987?

On October 19, 1987, the US stock market saw a jaw-dropping 22.6% drop in one day. It was one of the biggest one-day crashes in history, caused by panic selling, computer-driven trades, and fears of inflation. Thankfully, the economy bounced back pretty quickly.\

What’s Going on in 2025?

Fast forward to now—President Trump just slapped a 10% tariff on all imports and even harsher ones on countries like China and the EU. The market was shaken by fear as a result. With a 10% drop in only two days, the S&P 500 experienced one of the worst short-term falls in recent memory.

Are the Two Crashes Alike?

While both crashes are scary, they’re not similar. Inflation concerns and automated trading killed the market in 1987. This time, trade battles and world unpredictability are more important. Furthermore, compared to earlier times, today's markets are more intricate and linked.

Should We Be Worried?

Some experts, like CNBC’s Jim Cramer, think we could be heading for a 1987-style meltdown if things don’t calm down. Many are saying the economy is stronger now and could sustain the crash.

This recent crash feels a lot like 1987 in some ways, but there are key differences. It’s not exactly history repeating — more like it rhyming. Either way, investors are keeping a close eye and hoping for a quick recovery.