(Reuters) – U.S. stock index futures edged lower on Monday after Wall Street posted its best week of the year as investors looked ahead to the centerpiece of the week – Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole.

All three major indices posted sharp increases last week as a series of economic data, including a consumer price index and a retail sales report, pointed to a soft landing scenario for the economy.

Following the release of the latest weekly unemployment and retail sales figures, Goldman Sachs has reduced the probability that the US will slip into a recession in the next twelve months from 25 to 20 percent.

Over the weekend, Chicago Fed chief Austan Goolsbee said that failing to cut interest rates next month could hurt the labor market, while Mary Daly, president of the San Francisco Fed and a voting member of this year’s Federal Open Market Committee (FOMC), said in an interview with the Financial Times that it was time to think about adjusting borrowing costs.

When Fed Chairman Jerome Powell speaks at the Jackson Hole Economic Symposium on Friday, investors will be looking for signs of a possible rate cut in September.

According to the CME FedWatch tool, traders currently believe there is a 72 percent chance that the Fed will cut interest rates by 25 basis points in September. A week ago, the cut was evenly spread between 50 and 25 basis points.

The minutes of the last Fed meeting are due to be released on Wednesday. Comments from Fed Director Christopher Waller are also likely to be on investors’ radar later in the day.

This week’s earnings calendar is tight, with major companies set to report results later in the week including cybersecurity firm Palo Alto Networks, retailer Target and home improvement chain Lowe’s.

At 5:10 a.m. ET, the Dow E-minis were up 20 points, or 0.05%, the S&P 500 E-minis were down 5.25 points, or 0.09%, and the Nasdaq 100 E-minis were down 55.25 points, or 0.28%.

Most megacap and growth stocks declined in premarket trading, with Nvidia and Tesla losing more than 1 percent after rallying last week.

Dutch Bros fell nearly 3% after brokerage Piper Sandler downgraded the coffee chain’s rating to “neutral” from “overweight.”

B. Riley Financial lost 8.6 percent after the stock had already fallen by more than 65 percent in the previous week. Co-founder and co-CEO Bryant Riley had offered to buy the bank on Friday after the bank warned of a possible loss from its investment in the Franchise Group, which owns the Vitamin Shoppe.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty)