The U.S. dollar hovered below a one-week high on Thursday and European stock markets opened flat as investors braced for three days of potentially market-moving news from the Federal Reserve's annual symposium in Jackson Hole.

Federal Reserve chair is under bombardment from Donald Trump and battling an insurgency within the central bank

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.

By Howard Schneider WASHINGTON (Reuters) -Fed Chair Jerome Powell used the central bank's annual Wyoming research conference to promise inflation-fighting rigor when it was needed in 2022, then last year he came to the defense of the job market with promises of lower interest rates when the unemployment rate seemed on a steady rise.

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.

The U.S. dollar saw modest gains Wednesday as investors looked ahead to the release of the Federal Reserve’s latest policy meeting minutes and the Jackson Hole symposium for guidance on the central bank’s next steps.

The U.S. dollar was little changed on Wednesday as traders awaited a speech from Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium later this week for clues on the monetary policy path.