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Futures down: Dow 0.34%, S&P 500 0.32%, Nasdaq 0.42%

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

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

(Updates before market opens)

By Johann M Cherian and Sanchayaita Roy

Aug 25 (Reuters) - Wall Street's main indexes were on

track for a lower open on Monday, retreating from the previous

session's gains when Fed Chair Jerome Powell hinted that an

interest-rate cut could be on the table at the central bank's

meeting next month.

Recent economic data suggesting labor market weakness has

boosted investor confidence that the U.S. Federal Reserve 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

Fed'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.

"The most important report between now and September is not

the inflation numbers, but rather the jobs report," said Thomas

Hayes, chairman at Great Hill Capital, New York.

"As long as we show continued cracks in the labor

market, the cut in September will happen, barring some

egregiously high inflation numbers."

Powell's comments nudged major brokerages to revise their

expectations, with Barclays, BNP Paribas and Deutsche Bank now

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

Traders now see a 79.6% chance of a Fed rate cut in

September, according to data compiled by LSEG.

At 08:39 a.m. ET, Dow E-minis fell 156 points,

or 0.34%, S&P 500 E-minis were down 20.75 points, or

0.32%, and Nasdaq 100 E-minis lost 98.75 points, or

0.42%.

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

record high for the first time since December 2024, 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 )

earnings on Wednesday to see if its $4 trillion

valuation is justified. The chip giant's shares fell marginally

in premarket trading.

The potential impact on Nvidia's ( NVDA ) forecasts from its recent

revenue-sharing deal with the U.S. government will be closely

watched.

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

slid 7.8% 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 12.3% 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 1.8% after U.S. President Donald Trump

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

$8.9 billion, which the company said could limit its

international sales and future government grants.

White House economic adviser Kevin Hassett said in an

interview that the government could take stakes in other U.S.

semiconductor companies, or even companies in other industries.

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.