Popular CNBC host Jimmy Cramer sounds red flags on Wall Street
Popular CNBC host Jimmy Cramer is sounding red flags all over Wall Street after a particularly turbulent week for the stock market. Stocks have taken significant hits for two days in a row following President Trump’s implementation of new tariffs. Cramer predicts that upcoming earnings announcements could reveal just how serious the situation is, noting that the direction of the market will be determined not by companies but by Trump’s next moves.
“The direction of the market depends on what Trump does next,” Cramer said, drawing a sobering comparison to the 1987 market crash. He expressed a bleak outlook if Trump continues his uncompromising tariff policy: “If President Trump remains intransigent and does nothing to mitigate the damage I’ve seen in the last few days, I’m not going to be constructive here.”
if the president wants to avoid an April 2000, a March 2020 or an October 1987 he can offer a path to help workers. It can make a difference… —Jim Cramer (@jimcramer) April 4, 2025
Additionally, Cramer used his presence on X (formerly Twitter) to amplify his concerns: “It’s hard to build a weaker new world order on the fly. Frantically trying to do so, but I don’t see anything yet that takes the October ’87 scenario off the table yet. Those who fished the bottom are sleeping with the fishes… until now.”
The S&P 500 has plunged nearly 10% in recent days, putting it in a position comparable to Black Monday in 1987, the post-Lehman crash of 2008 and the initial Covid panic of 2020. Markets, once trying to stabilize, have faced repeated setbacks in their attempts to recover, with dramatic declines through Friday’s close.
While the latest jobs report did not signal an imminent economic collapse, market tension was clear and the focus remained on Trump’s decisions on tariffs. Jim Paulsen of Paulsen Perspectives criticized the tariff policies as “stupid” and pointed to the need for a softer approach by the Fed, although Fed Chairman Jerome Powell reiterated that there was “no rush” to cut rates.
This turbulent period has also affected investments considered safe. Gold, utilities and even large companies like Berkshire Hathaway have seen major drops in their values.
With the market caught between possible negative outcomes, one uncertainty remains: whether or not Trump will backtrack on his tariff decisions, which could at least offer a brief respite for nervous markets.