A hawkish Powell could spell trouble for the market as a whole, but especially for rate-sensitive stocks like homebuilders and small caps, which have rallied in anticipation of cuts.

The key event this week is the Fed's annual symposium at Jackson Hole, Wyoming, from Aug. 21-23, where Powell's comments will be scrutinized for any clues on the central bank's outlook on the economy ...

“It seems like folks are hedging a little going into Jackson Hole, thinking Powell might be more hawkish than markets currently appreciate,” said James Cox, managing partner at Harris Financial Group...