*

Futures down: Dow 0.19%, S&P 500 0.22%, Nasdaq 0.31%

*

Keurig Dr Pepper ( KDP ) slides after deal to buy Dutch JDE Peet's

*

Intel ( INTC ) gains as US moves to acquire 10% equity stake

*

PDD Holdings ( PDD ) rises after quarterly revenue beats estimates

(Updates with results from PDD holdings)

By Johann M Cherian and Sanchayaita Roy

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 under consideration at the central bank's meeting

next month.

Recent economic data suggesting labor market weakness

has bolstered investor confidence that the central bank could

switch to a dovish stance in September, despite a majority of

policymakers warning that U.S. tariffs could 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 said 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 07:26 a.m. ET, Dow E-minis fell 87 points, or

0.19%, S&P 500 E-minis lost 14.5 points, or 0.22%, and

Nasdaq 100 E-minis were down 73.75 points, or 0.31%.

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

record high for the first time since last 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 see if its $4 trillion

valuation is justified. 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 4.4% after saying 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 12.6% 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 1.6% after U.S. President Donald Trump

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

$8.9 billion.

U.S.-listed shares of PDD Holdings ( PDD ) rose 6.4%

after the e-commerce platform

topped its quarterly revenue estimates

.

Remarks from New York Fed John Williams, a Federal Open

Market Committee voting member, later in the day will be

scrutinized to see if he shares Powell's policy outlook.