Fed chair Jerome Powell will deliver remarks at Jackson Hole on Friday. State Street's chief strategist lays out what investors should listen for.

Federal Reserve chair Jerome Powell is scheduled to speak at the central bank's annual Jackson Hole Symposium on Friday, an event that could be a major test of the stock market's post-"Liberation Day" rally.

Powell has never responded directly to Trump's provocations, and I, personally, expect this issue to play a predominant role at his latest meeting in Jackson Hole, perhaps even more so than the interest rate discussion. The independence of central banks is much more important than a 25 basis point change in the coming month.

The Nasdaq and S&P 500 fell on Wednesday as investors sold tech stocks and moved into less highly valued sectors, as they also awaited remarks from Federal Reserve officials at their Jackson Hole symposium this week.

The Nasdaq fell as megacaps lost after having rallied for much of the year. Nvidia fell 3.5%, the biggest drop in nearly four months.

U.S. stocks finished mostly lower on Tuesday, after a selloff in megacap technology names weighed on the three major indexes ahead of the Federal Reserve’s annual economic symposium in Jackson Hole, Wyo.