U.S. stock index futures dropped slightly on Monday evening, retreating after strong gains in technology stocks helped Wall Street rise despite a growing feud between President Donald Trump and Federal Reserve Chair Jerome Powell. Investors are cautious ahead of key consumer price index inflation data for December, scheduled for release on Tuesday. This data is expected to provide more definitive cues on U.S. inflation for 2025 and will likely influence the outlook for interest rates.

President Trump announced that his administration is in talks with Microsoft and other major technology companies to ensure that higher utility costs associated with AI data centers do not impact household bills. This move addresses growing concerns among Americans about rising utility costs due to data centers, but it could also lead to increased operational expenses for companies operating these facilities. The focus this week is not only on inflation but also on the fourth-quarter earnings season, which begins with several major banks set to report in the coming days. JPMorgan Chase & Co and Bank of New York Mellon Corp will report on Tuesday, followed by Bank of America Corp, Wells Fargo & Company, and Citigroup Inc on Wednesday.

Investors are closely watching these reports for insights into the economic outlook and potential impacts on interest rates.