The stock markets across Asia and Europe faced a significant downturn on Monday, triggered by China's response to the exorbitant tariffs imposed by the United States. This event has evoked memories of similar market disruptions following the COVID-19 pandemic and the global financial crisis, with analysts describing it as a 'historic' collapse and likening it to a 'bloodbath' reminiscent of previous market crashes since the early 20th century.

The upheaval in stock markets entered the realm of history on October 24, 1929, known as 'Black Thursday' on Wall Street, where an upward market abruptly crumbled, leading to a more than 22% loss in the Dow Jones at the onset of trading. Stocks recovered some of the losses during the day, yet the decline continued, spiraling into the catastrophic economic downturn known as the Great Depression.

In another historic crash on October 19, 1987, known as 'Black Monday,' Wall Street collapsed due to a massive deficit in the U.S. trade balance and budget coupled with rising interest rates, resulting in a 22.6% decline in the Dow Jones, sparking global market panic.

The turn of the millennium brought the 'Dot-com Bubble' burst in 2000, where the wilful investment of venture capital in unproven tech firms resulted in a dramatic downturn. The NASDAQ index, comprising tech companies in the U.S., fell drastically, losing 39.3% of its value in one year, leaving behind a trail of insolvent internet start-ups.

The 2008 financial crisis erupted from the risky lending of subprime mortgages to financially unstable individuals in the United States. These loans were then packaged as investments, fueling a real estate bubble. With borrowers defaulting on their mortgages, millions lost their homes, markets crashed, and financial institutions were severely impacted, culminating in the bankruptcy of the investment colossus, Lehman Brothers. Stock markets plummeted globally by around 30% to 50% between January and October 2008.

The onset of the COVID-19 pandemic in March 2020 triggered one of the most precipitous global market downturns, as the World Health Organization declared it a pandemic, prompting lockdowns worldwide. The day following the declaration, the Paris stock exchange declined by 12%, Madrid by 14%, and Milan by 17%. London's stock market dropped 11%, with New York following closely with a 10% drop, marking the steepest decline since the crash of 1987. Subsequently, American stock indices plummeted by over 12%.

Quick governmental response with robust measures supported an economic rebound within months, demonstrating the resilience of financial systems when faced with a combined effort from national governments to stabilize economies in crisis.

Recent market turmoil, triggered by escalating trade tensions between the United States and China, revived concerns of a full-scale economic recession, historically induced by trade conflicts and financial policy uncertainties. The imposition of high tariffs by President Donald Trump sparked reciprocal actions from China, plunging global stock markets into chaos.

European stock exchanges mirrored the turmoil in Asian markets, with Frankfurt witnessing a 7.86% decline, Paris dropping by 6.19%, and London's market falling by 5.83%. Meanwhile, Milan's stock exchange saw a 2.32% drop, and the Swiss market declined by 6.82%. Hong Kong's stock exchange faced a severe collapse, dropping 13.12%, marking its worst crash since 1997, further fueled by the aggressive trade war initiated by the US administration.

Such fluctuations in stock market indices underscore the vulnerability of global financial markets to geopolitical tensions and policy decisions, illustrating a complex tapestry of historical financial challenges that continue to resonate today. As nations delve into the potential outcomes of trade disputes, historical patterns offer a sobering reminder of potential economic instability.