
Could This Be the Worst 3-Day Selloff Since Black Monday? (Apr 7, 2025)
created At: 4/7/2025

Sell
This analysis includes a sell recommendation. Please carefully review all mentioned risk before proceeding.
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Fact
On Monday (Apr 7), S&P 500 futures dropped more than 3%. If the decline continues, this could mark the worst 3-day selloff since 1987.
The 1987 Black Monday crash saw the Dow Jones plunge 22.6% in a single day, marking the first instance of a simultaneous global market collapse.
Automated selling strategies like portfolio insurance and program trading at the time accelerated the downward spiral.
Prior to Black Monday, the market was already vulnerable due to rising interest rates, widening trade deficits, and overvalued equities.
In 2025, a combination of new tariff announcements and global growth concerns has triggered a sharp selloff, raising fears of a “Black Monday 2025” scenario.
Opinion
Both 1987 and 2025 illustrate how structural vulnerabilities, when combined with external shocks (interest rates in 1987, tariffs in 2025), can lead to violent market corrections. While algorithmic trading and fragile systems were key triggers in the past, geopolitical risks, policy uncertainty, and market concentration are the dominant risks today. However, today's markets also benefit from faster policy response, quicker information dissemination, and a stronger flight-to-safety dynamic (e.g., gold buying).
Core Sell Point
Just like Black Monday, the current market rout reflects a dangerous convergence of internal fragility and external shocks. While history doesn’t repeat itself exactly, it often reveals the same weak points in new forms.
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