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What impact will the Fed's hawkish guidance have on global stock markets? In recent news, the Federal Reserve Board has issued a hawkish guidance, causing ripples in global stock markets. The Dow Jones and Nasdaq 100 experienced a fall immediately after the Fed's decision, while the decline in the Hang Seng index continues. But what does this mean for the future of stock markets? According to a report by Investorempires.com, the Dow Jones and Nasdaq 100 have retreated from their record highs and are currently testing trendline support from the mid-January low. This suggests that investors are hesitant and have doubts about the Fed's hawkish stance. If the support levels are broken, it could test the area around 37,840, which was the late December high. This indicates potential further decline in the short term. Furthermore, an interesting observation made by Investorempires.com is that gold and silver tend to react inversely to the stock market. When the stock market breaks out, gold and silver often experience a decline. This suggests that investors may be shifting their focus away from precious metals and towards the stock market in response to the Fed's hawkish guidance. However, it is important to note that the impact of the Fed's guidance on global stock markets is not limited to the US. The Hang Seng index, for example, has been experiencing a continuous decline. This indicates that the effects of the Fed's hawkish stance are being felt globally. In conclusion, the Fed's hawkish guidance has had a notable impact on global stock markets. The Dow Jones and Nasdaq 100 have fallen, with potential further decline in the short term. Additionally, gold and silver may experience a decline as investors shift their focus towards the stock market. It remains to be seen how long these trends will persist and what the long-term effects of the Fed's guidance will be on the global economy.