Google searches for ‘Black Monday’ have accelerated in the past seven days following the stock market’s massive capital outflow on April 4, triggered by unease from trade tariff concerns.
As of April 7, search interest in the term peaked at 100 in the United States, a staggering 1,300% spike from a score of 7 recorded on March 31, according to data retrieved by Finbold from Google Trends.
A breakdown of interest in the term shows that the capital, Washington D.C., leads at 100, followed by New Hampshire at 94. Notable interest has also been recorded in New Jersey, Massachusetts, and Washington State.
Indeed, the search spike likely reflects growing investor panic after major indices plunged during the April 4 session. The benchmark S&P 500 dropped 6%, the Dow Jones fell 5.2%, and nearly $6.4 trillion in value was wiped out. The Nasdaq slid 5.8%, entering bear market territory.
‘Black Monday’ refers to the October 19, 1987, stock market crash. The Dow Jones Industrial Average plummeted by 22.6%, marking the largest single-day percentage drop in the index’s history.
The 1987 crash was triggered by overvaluation, program trading, and market panic. The event remains a benchmark for market volatility and is often referenced during significant downturns.
Is Black Monday 2.0 imminent?
With President Donald Trump maintaining a firm stance on the controversial tariffs and stock markets showing losses in the pre-market, there are growing fears that equities’ performance today, Monday, April 7, might evolve into a ‘Black Monday 2.0’.
It’s worth noting that the ‘Black Monday’ downturn had global effects, with most international markets also tumbling. In the current scenario, while the U.S. stock market is expected to open in the red, global equities are already witnessing losses.
Asian markets plunged, with Hong Kong’s Hang Seng down over 13%, its worst drop since 1997, Japan’s Nikkei 225 falling nearly 9%, and China’s Shanghai Composite sliding 7%. European stocks also sank, with Germany’s DAX down 6% and the UK’s FTSE 100 off 5.2%.
To complicate matters, the odds of a recession have increased significantly, with banking giant JPMorgan putting the probability at 60%.
Featured image via Shutterstock
