Is Black Monday Here? Panicking Investors Watch as US Market Set to Open Shortly

Global financial markets are teetering on the edge of a historic meltdown, with U.S. Dow futures plummeting 950 points and the VIX "fear index" soaring to 60—its highest since August—signaling extreme investor panic. Dubbed "Black Monday" by analysts, this latest bloodbath, reported by Financial Express, follows a brutal week where the S&P 500 lost $5 trillion in value, the Nasdaq entered a bear market, and the Dow suffered its worst back-to-back losses ever, including a 2,231-point drop on Friday.

The catalyst? U.S. President Donald Trump’s sweeping "reciprocal tariffs," unveiled on April 2, which slapped a 10% baseline duty on all imports and higher rates on key trading partners—34% on China, 46% on Vietnam, and 20% on Europe. China retaliated with a 34% tariff on U.S. goods, escalating fears of a spiraling trade war. Asian markets, including Hong Kong’s Hang Seng, which fell 13%, and European indices like the STOXX 600, down 4%, felt the shockwaves. In India, the Sensex tanked 2,200 points, wiping out Rs 19.4 lakh crore in market capitalization.

Amid this chaos, the U.S. Federal Reserve has scheduled a closed-door meeting for Monday morning, announced on April 3, to discuss advance and discount rates. While social media buzz labels it an "emergency" response to the market crash, the timing suggests it was pre-planned, casting doubt on claims it was directly triggered by the recent dump. Still, posts on X reflect investor hopes for rate cuts or quantitative easing to stem the bleeding.

Goldman Sachs now pegs U.S. recession odds at 45%, up from 35%, while JP Morgan warns of a 60% chance of a global recession by year-end. As Trump doubles down, calling tariffs "medicine" for the U.S. economy, markets and experts fear this storm may just be the beginning.