The global financial markets are in turmoil yet again. A recent announcement by U.S. President Donald Trump on reciprocal tariffs against 180+ countries has triggered a wave of panic selling across world markets. India’s benchmark indices—Sensex crashed over 3,000 points, while Nifty fell more than 1,000 points in early trade, wiping out nearly ₹19 lakh crore in investor wealth.

As experts warn of a looming global recession, investors are recalling two of the most catastrophic financial crashes in history—Black Monday (1987) and the Great Depression (1929). But what exactly happened back then? And why is the current situation drawing such comparisons?

📉 What Happened on Black Monday, 1987?

October 19, 1987, now remembered as Black Monday, marked one of the worst one-day stock market crashes in history. The Dow Jones Industrial Average (DJIA) plunged 22.6% in a single day—a record that still stands.

• Losses totaled a staggering $1.71 trillion globally.

• Stock exchanges in Asia, Europe, and North America experienced synchronized collapses.

• Computer trading systems, then a new concept, failed to manage the panic-driven sell-off, exacerbating the fall.

• Central banks rushed to inject liquidity, fearing a prolonged economic crisis.

This chain reaction was sparked by growing economic uncertainty, high valuations, and investor panic, leading to what analysts called a “snowball effect” of losses.

🕳️ The 1929 Great Depression: The Crash That Changed the World

If Black Monday was a sharp jolt, the 1929 stock market crash was a prolonged economic earthquake. It began on October 29, 1929—‘Black Tuesday’—when the U.S. stock market collapsed, ushering in the Great Depression that lasted an entire decade.

Timeline of Events:

• Black Thursday (Oct 24, 1929): First signs of panic.

• Black Monday (Oct 28): Markets fell steeply.

• Black Tuesday (Oct 29): Over 16 million shares sold, wiping out millions in wealth.

• DJIA plunged nearly 90% over 3 years.

• Unemployment soared. Global trade collapsed. Economies from Europe to South America were devastated.

Despite efforts by business tycoons to stabilize the market by injecting funds, investor confidence was shattered. Banks failed. Demand dried up. The world economy spiraled downward.

🌍 2025 Crash: Echoes of the Past?

Fast forward to April 2025: Trump's reciprocal tariff policy, announced on April 2, has jolted global markets. With over 180 countries targeted, including major Asian and European economies, global trade fears are resurging.

Key Highlights of April 2025 Crash:

• Sensex fell over 3,000 points, Nifty crashed more than 1,000 points.

• Experts fear the start of another global recession.

• Market losses exceeded ₹19 lakh crore in India alone.

• Investors are drawing comparisons to 1987 and 1929.

While the 2025 scenario is still unfolding, the ripple effect of policy decisions is undeniable. It underscores how a single geopolitical move can trigger global economic instability.

📊 Timeline of Major Recessions

🛡️ Will History Repeat Itself?

While markets tend to recover over time, the psychological impact of financial crashes lingers for decades. Black Monday (1987) and the Great Depression (1929) remain cautionary tales in economic textbooks and boardrooms alike.

As of now, investors are advised to remain calm, avoid panic selling, and stay diversified. The coming weeks will be crucial to determine whether this crash is temporary turbulence or the start of a full-blown financial crisis.