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Adobe up after lifting full-year revenue forecast

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US consumer sentiment ebbs in June; inflation worries

linger

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Indexes: Dow down 0.3%, S&P 500 down 0.2%, Nasdaq down

0.04%

(Updates to 2:30 p.m. ET)

By Caroline Valetkevitch

NEW YORK, June 14 (Reuters) -

U.S. stocks edged lower on Friday after a string of record

highs, but gains in Adobe and other technology shares limited

the decline.

The Nasdaq and S&P 500, which registered their fourth

straight record closing highs on Thursday, were still on track

for strong gains for the week.

The S&P 500 technology sector rose 0.5%. Adobe

shares jumped 14.4% after the company raised its annual

revenue forecast on more demand for its AI-powered software.

Investors were also digesting economic data to try to gauge

how soon the Federal Reserve might be able to cut interest

rates.

A preliminary reading of the University of Michigan's

Consumer Sentiment Index slipped to 65.6 in June, sharply lower

than expectations.

On Wednesday, Fed

policymakers dialed back their projections for three cuts

this year to just one.

"The market is extended and due to pull back," said Adam

Sarhan, chief executive of 50 Park Investments in New York.

"You've had a big rally this week, led by big-cap tech. Under

the surface, we have a lot of areas acting weak."

The Dow Jones Industrial Average fell 116.28 points,

or 0.3%, to 38,530.82. The S&P 500 lost 10.57 points, or

0.19%, at 5,423.17 and the Nasdaq Composite dropped 6.95

points, or 0.04%, to 17,660.61.

The Russell small-cap index was down 1.8%.

Nvidia ( NVDA ) shares were up 1.5% in afternoon

trading, after briefly surpassing Apple ( AAPL ) as the second

most valuable company in the world.

Declining issues outnumbered advancers on the NYSE by a

2.96-to-1 ratio; on Nasdaq, a 2.69-to-1 ratio favored decliners.

The S&P 500 posted 10 new 52-week highs and 16 new lows;

the Nasdaq Composite recorded 24 new highs and 170 new lows.

(Additional reporting by Lisa Mattackal and Johann M Cherian in

Bengaluru; Editing by Maju Samuel and Richard Chang)