After last week’s sharp two-day stock crash triggered by new tariffs, investors are on edge as Monday’s trading starts. Some fear a repeat of the 1987 Black Monday collapse, while others hope stocks will rebound if President Donald Trump delays new tariffs or makes a major trade deal. On April 2, 2025, Trump announced new “Liberation Day” tariffs of 10% tax on all goods entering into the country, with even higher rates for some nations.
For context, October 19, 1987, is known as Black Monday because U.S. stocks suffered their worst one-day crash in history, with the Dow Jones dropping 22.6% in a single session. Experts warn of similar trading on Monday after U.S. stocks lost $3.1 trillion on Friday, which marked their worst single-day drop since the COVID-19 crash. Specifically, the Dow fell 5.5%, the S&P 500 (SPY) dropped 6.0%, and the Nasdaq slid 6.1% on Friday.
Asian Stock Markets Tumble Sharply on Monday
Beyond American borders, Asian stock markets saw a big drop on Monday with strong selling. The markets reflect rising worry about how the tariffs could hurt global trade and the economy.
Taiwan’s stock market had its biggest drop as trading started again after a holiday. It’s now close to a bear market, falling in line with a global selloff caused by Trump’s new tariffs. Notably, semiconductor giant TSMC’s shares in Taiwan dropped as much as 10% early in the day. On Friday, its shares on the NYSE (TSM) also fell nearly 7%.
Meanwhile, Hong Kong’s Hang Seng index is down more than 10% in early trade. Shares of Alibaba (HK:9988) (BABA) have declined more than 16%. Similarly, Japan’s Nikkei 225 has dropped 6.4%, and South Korea’s Kospi is down 5%. In Australia, markets have hit an 18-month low, with the S&P/ASX 200 falling 4.3% as of writing. Moreover, India’s S&P BSE SENSEX dropped 4.07%, while the NSE NIFTY50 fell 5% in early trading hours.
Bill Ackman Warns Against Trump’s Tariffs
Famous hedge fund manager and Trump supporter Bill Ackman criticized Trump’s new tariffs, saying they have thrown markets into chaos. Ackman, founder of Pershing Square, called the new trade plan a “mistake.” He also urged the U.S. president to pause the tough tariff plan, warning it could harm the world economy and hit working-class Americans the hardest.
He further warned that Trump is losing the trust of business leaders around the world, calling the move too aggressive and damaging.
TipRanks’ Screener Tool Simplifies Stock Selection
During this time of market volatility, investors can use the TipRanks Stock Screener tool to find top-rated stocks backed by analysts with strong long-term growth potential. The tool filters stocks based on expert ratings, market sentiment, and key fundamentals, which could help users identify solid picks in shaky markets. Below is the screenshot for your reference.
