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.

U.S. stock futures were trading lower following a powerful rally on Friday after comments by Federal Reserve Chairman Jerome Powell fueled hopes for a September interest rate cut. Dow Jones Industrial Average futures fell 80 points,

U.S. stock futures pointed to small losses early Monday, with the market looking to take a breath after the rally inspired by Federal Reserve Chair Jerome Powell opening the door to interest-rate cuts.

Major brokerages, including Barclays, BNP Paribas and Deutsche Bank, now expect a 25-basis-point U.S. Federal Reserve rate cut in September following Chair Jerome Powell's shift in tone at Jackson Hole toward rising risks in the labor market.

Now that Federal Reserve Chair Jerome Powell has signaled that the central bank could soon cut its key interest rate, he faces a new challenge: how to do it without seeming to cave to the White House’s demands.