*

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

*

Furniture retailers drop as Trump threatens tariff inquiry

*

S&P 500 -0.16%, Nasdaq +0.15%, Dow -0.60%

(Updates with afternoon trading)

By Johann M Cherian and Noel Randewich

Aug 25 (Reuters) - Wall Street stocks were mixed on

Monday as investors looked ahead to AI chipmaker Nvidia's ( NVDA )

quarterly earnings this week, digesting a rally on Friday that

lifted the Dow Jones Industrial Average to a record high close.

On Friday, stocks jumped after Powell hinted at the

Jackson Hole Symposium that an interest-rate cut could be

considered at the central bank's September meeting, citing

recent labor market weakness.

"The market has a Jackson Hole hangover," said Jake

Dollarhide, CEO of Longbow Asset Management in Tulsa,

Oklahoma. "Investors are taking a little bit of a breather."

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 crucial, especially after Powell said

a rate cut was not certain.

"The focus right now is the labor market," said Brian

Klimke, investment director at Cetera Investment Management.

"We have the job market that's rolling over a little bit and

the economy is weakening, so the Fed needs to act sooner than

later and they're seeing it too."

Nvidia ( NVDA ) climbed 1.8% ahead of its quarterly report

on Wednesday, which will be one of Wall Street's most closely

watched events of the week and a crucial test of the scorching

AI trade.

With Nvidia ( NVDA ) making up about 8% of the S&P 500, results

of the world's most valuable company affect vast numbers of

Americans who use index investment funds to save for their

retirements.

"This is an incredibly important event from a market

participant standpoint," said Michael Green, portfolio manager

at Simplify Asset Management.

Powell's comments on Friday nudged major brokerages to

revise their expectations, with Barclays ( BCS ), BNP Paribas and

Deutsche Bank currently seeing a 25-basis-point reduction in

borrowing costs next month.

Traders now see an 86% chance of a Fed rate cut in

September, according to CME Group's FedWatch tool. Remarks from

policymakers John Williams and Lorie Logan later in the day will

be scrutinized to see if they share Powell's policy outlook.

The S&P 500 was down 0.16% at 6,456.86 points.

The Nasdaq gained 0.15% to 21,527.92 points, while the

Dow Jones Industrial Average was down 0.60% at 45,358.95 points.

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

record high for the first time since December 2024, and the

benchmark S&P 500 logged its strongest one-day gain since May.

On Monday, Jefferies became the latest brokerage to raise

its year-end target for the S&P 500.

Seven of the 11 S&P 500 sector indexes declined, led lower

by consumer staples, down 1.23%, followed by a 1.2%

loss in health care.

Beverage company Keurig Dr Pepper ( KDP ) slid 9% after

saying it would buy JDE Peet's for $18.4 billion in

cash.

Furniture retailers RH and Wayfair ( W ) declined

more than 4% each after U.S. President Donald Trump said on

Friday his administration would investigate furniture import

tariffs.

Intel ( INTC ) inched up 0.3% after Trump said the U.S.

government was taking a stake in the chipmaker. He also said he

would make other deals similar to the one with Intel ( INTC ).

Declining stocks outnumbered rising ones within the S&P 500

by a 3.3-to-one ratio.

The S&P 500 posted 13 new highs and no new lows; the

Nasdaq recorded 115 new highs and 29 new lows.