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Futures down: Dow 0.19%, S&P 500 0.22%, Nasdaq 0.32%

Aug 25 (Reuters) - U.S. stock index futures slipped on

Monday, pausing after strong gains in the previous session, when

Federal Reserve Chair Jerome Powell hinted that an interest-rate

cut could be on the table at the central bank's meeting next

month.

Recent data suggests heightened risks to labor market health

and a majority of Fed officials have said U.S. tariffs were

likely to add to inflationary pressures in the coming months.

The Personal Consumption Expenditures Price index - the U.S.

Federal Reserve's preferred inflation gauge - is due to be

released on Friday, while official nonfarm payrolls data is

expected next week. The reports will be key, especially after

Powell warned that a dovish verdict was not a certainty.

"There are persistent concerns about tariff-related

inflation and how that may evolve in the coming months. But the

reality is that recent tariff-driven price pressures are viewed

as transitory and inflation expectations are quite stable," said

David Chao, a global market strategist at Invesco.

"These well-anchored inflation expectations suggest that the

Fed should be working to offset any weakness in the U.S.

economy."

Powell's comments nudged major brokerages to revise their

expectations, with Barclays, BNP Paribas and Deutsche Bank now

seeing a 25-basis-point rate cut next month.

Traders have also bumped up bets on a September reduction to

84.2%, according to data compiled by LSEG.

At 05:40 a.m. ET, Dow E-minis were down 87 points,

or 0.19%, S&P 500 E-minis fell 14.25 points, or 0.22%,

and Nasdaq 100 E-minis lost 74.5 points, or 0.32%.

Friday's optimism helped the blue-chip Dow close at a

record high for the first time since December, while Jefferies

became the latest brokerage to raise its year-end target for the

benchmark S&P 500 at a time when companies have tempered

tariff-related forecasts.

This week is also crucial for the AI sensation that has

powered Wall Street highs. Traders are gearing up for Nvidia's ( NVDA )

results on Wednesday to justify its $4 trillion

valuation. The chip giant's shares rose marginally in premarket

trading.

The potential impact of Nvidia's ( NVDA ) recent revenue-sharing deal

with the U.S. government on its forecasts will be closely

watched.

In deals-related moves, beverage company Keurig Dr Pepper ( KDP )

slid 3% after it said it would buy JDE Peet's

for $18.4 billion in cash. The Dutch coffee company's shares

jumped 17.3% in European trading.

Verint Systems ( VRNT ) jumped 22.8% after a report said

private equity firm Thoma Bravo would acquire the call center

software maker for about $2 billion, including debt.

Intel ( INTC ) rose 3.1% after U.S. President Donald Trump

said the government was taking a 9.9% stake in the chipmaker for

$8.9 billion.

Remarks from New York Fed John Williams, a Federal Open

Market Committee voting member, are due later in the day and

will be scrutinized to see if he shares Powell's outlook on

policy.