Will a Black Monday crash happen tomorrow?
Many people are calling for a market crash at tomorrow’s open, for the following reasons.
- Oil prices have topped $100.
- AI perpetual futures are crashing.
- Bank stocks are being sold off.
- The VIX has hit a four-month high.
- Bond yields are surging.
- Inflation is running hot.
- War and geopolitical uncertainty are on the rise.
- Rumors of AI funds blowing up are spreading.
Coincidentally, the 1987 Black Monday crash happened on October 19, and tomorrow is also October 19.
Here’s what happened during the last Black Monday crash:
- U.S. stocks plunged 22% in a single day, wiping out $500 billion.
- Global stock markets lost more than $1.7 trillion.
- The Federal Reserve had to inject liquidity to calm the markets.
The last Black Monday crash was caused solely by rising interest rates and concerns about the trade deficit.
This time, markets are much more mature, and a massive crash like that is impossible thanks to circuit breakers.
That doesn’t mean there won’t be a sell-off, but a full-blown crash like the one in 1987 would be a bit extreme.
Many people are calling for a market crash at tomorrow’s open, for the following reasons.
- Oil prices have topped $100.
- AI perpetual futures are crashing.
- Bank stocks are being sold off.
- The VIX has hit a four-month high.
- Bond yields are surging.
- Inflation is running hot.
- War and geopolitical uncertainty are on the rise.
- Rumors of AI funds blowing up are spreading.
Coincidentally, the 1987 Black Monday crash happened on October 19, and tomorrow is also October 19.
Here’s what happened during the last Black Monday crash:
- U.S. stocks plunged 22% in a single day, wiping out $500 billion.
- Global stock markets lost more than $1.7 trillion.
- The Federal Reserve had to inject liquidity to calm the markets.
The last Black Monday crash was caused solely by rising interest rates and concerns about the trade deficit.
This time, markets are much more mature, and a massive crash like that is impossible thanks to circuit breakers.
That doesn’t mean there won’t be a sell-off, but a full-blown crash like the one in 1987 would be a bit extreme.