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US annual PCE inflation rises 2.7% YoY in April

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Dell plunges after lower current-quarter profit forecasts

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Trump Media ( DJT ) falls in choppy trading after Trump conviction

By Abigail Summerville

NEW YORK, May 31 (Reuters) -

The S&P 500 and Nasdaq posted losses for the week on Friday,

breaking their five-week winning streaks, as investors digested

an inflation report and assessed when the Federal Reserve might

begin cutting interest rates.

The Dow rallied on the day.

The technology sector dipped. An index of

semiconductors was down, while shares of Dell

plummeted after it forecast current-quarter profit below market

estimates and signaled that higher costs to build servers that

meet heavy AI workloads would dent its annual margins.

The U.S. personal consumption expenditures (PCE) price

index increased 0.3% last month, the Commerce Department's

Bureau of Economic Analysis reported, matching the unrevised

gain in March.

Consumer spending slowed more than expected, it added.

"People were pleased that it wasn't hotly surprising but

also underneath the surface, the consumer continues to show a

little bit of strain," said Carol Schleif, chief investment

officer at the BMO family office in Minneapolis.

"It's coming through when you look at the sector

performances in the market. ... Consumer discretionary is down

at the bottom of the list of sector performers today."

Traders of futures tied to the Fed policy rate added to

bets of roughly even odds that the central bank will begin to

cut rates in September and boosted the chances of a second rate

cut in December to about the same probability.

According to preliminary data, the S&P 500

gained 44.53 points, or 0.85%, to end at 5,280.01 points,

while the Nasdaq Composite lost 2.06 points, or 0.01%,

to 16,735.02. The Dow Jones Industrial Average

rose 595.78 points, or 1.56%, to 38,707.26.

Tech and chip stocks, which have led Wall Street's

recent rally, retreated this week as a spike in Treasury yields

pressured riskier assets.

Among gainers, Zscaler ( ZS ) jumped after the security

solutions provider forecast fourth-quarter results above

estimates.

Gap surged after the apparel maker raised its annual

sales forecast and its first-quarter results beat market

expectations, in fresh signs that its turnaround strategy was

starting to work.

Trump Media & Technology Group ( DJT ) fell after a New York

jury convicted former President Donald Trump of falsifying

documents to cover up a hush money payment to a porn star ahead

of the 2016 elections.