(For a Reuters live blog on U.S., UK and European stock

markets, click/ or type LIVE/ in a news window.)

*

Chevron ( CVX ) falls after missing Q4 results estimates

*

Atlassian ( TEAM ) jumps after upbeat Q3 revenue forecast

*

All three indexes set for monthly gains

*

Indexes: Dow down 0.01%, S&P 500 up 0.68%, Nasdaq up 1.26%

(Updates with mid-session trading levels)

By Shashwat Chauhan and Sukriti Gupta

Jan 31 (Reuters) -

The S&P 500 and the Nasdaq rose on Friday, as Apple ( AAPL ) gained

following a strong sales forecast and a reading of the U.S.

central bank's favored inflation gauge reinforced expectations

that the Fed would keep interest rates unchanged for longer.

U.S. prices increased as expected in December, while

consumer spending surged, suggesting that the Federal Reserve

has the leeway to delay cutting borrowing costs for an extended

period this year.

Traders kept their bets on the Fed waiting until June to

resume rate cuts at 70% after the data was released, futures

that settle to the central bank's policy rate showed.

The central bank held interest rates steady in its latest

rate decision earlier this week, with Fed Chair Jerome Powell

saying there would be no rush to lower them again until

inflation and jobs data made it appropriate to do so.

Apple ( AAPL ) lost some steam and was up 0.7% after upbeat

executive comments in its earnings on Thursday, in a sign the

company expects to recover from a dip in iPhone sales as it

rolls out AI features.

"We saw continued softness in China (and) that's always

been a pain point for Apple ( AAPL )," said Mark Malek, chief investment

officer at Muriel Siebert & Co.

"But the reasons that they gave for the slide in iPhone

sales in China have more to do with supply-chain problems, less

to do with demand. So the demand appears to be there."

Fed Governor Michelle Bowman acknowledged before Friday's

data that inflation risks were on the upside, while Chicago Fed

President Austan Goolsbee said the data was a bit better than

expected, indicating that inflation was on the path to the 2%

target.

Keeping gains in check on the Dow, Chevron ( CVX )

dropped 3.7% after reporting fourth-quarter earnings below

estimates.

Exxon Mobil ( XOM ) also fell 0.6% after quarterly results,

pulling the energy sub-sector down 1.2%.

At 11:28 a.m. ET, the Dow Jones Industrial Average

fell 3.40 points, or 0.01%, to 44,878.73, the S&P 500

gained 41.36 points, or 0.68%, to 6,112.53, and the Nasdaq

Composite gained 248.11 points, or 1.26%, to 19,929.86.

All three indexes were set for a flat-to-higher weekly

finish, as most AI-linked stocks recouped some losses following

a rout after Chinese startup DeepSeek unveiled a breakthrough in

low-cost artificial-intelligence models, triggering a selloff.

Despite this week's volatility, all three major indexes were

on track for monthly gains, with the S&P 500 being less than 1%

short of its all-time high, hit last week.

Meanwhile, global markets stayed vigilant ahead of U.S.

President Donald Trump's Saturday deadline to impose a 25%

tariff on imports from Mexico and Canada.

Among other stocks, Atlassian ( TEAM ) jumped 18.1% after

the enterprise software developer projected third-quarter sales

above estimates and raised its annual revenue forecasts.

Advancing issues outnumbered decliners by a 1.28-to-1

ratio on the NYSE, and by a 1.28-to-1 ratio on the Nasdaq.

The S&P 500 posted 25 new 52-week highs and two new

lows, while the Nasdaq Composite recorded 55 new highs and 51

new lows.