Now that Federal Reserve Chair Jerome Powell has signaled that the central bank could soon cut its key interest rate, he faces a new challenge: how to do it without seeming to cave to the White House’s demands.

John Luke Tyner, head of fixed income at Aptus Capital Advisors, said Powell has accepted the market's argument that the labor market is weakening and that it is a larger threat to the economy than tariff-related inflation.

If inflation starts climbing again after a rate cut, “the Fed will have to reverse course — and in the worst case, start hiking again,” Slok said.

Fed Chair Jerome Powell's address on Friday and Nvidia earnings after the close on Wednesday may hold the keys as to whether the bull market can continue. "In the near-term, if Chair Powell can give a market-friendly speech and NVDA can meet,

The stock market is heading into a catalyst-filled week as Fed Chair Jerome Powell gets ready to speak at Jackson Hole and big retailers report earnings.