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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

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Indexes: Dow up 0.7%, S&P down 0.31%, Nasdaq loses 1.26%

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

By Abigail Summerville

NEW YORK, May 31 (Reuters) -

The S&P 500 and the Nasdaq eased on Friday, on track to

break their five-week winning streaks, as investors digested an

inflation report and assessed when the Federal Reserve might

begin cutting interest rates.

The technology sector led declines among the

S&P 500 sectors, falling 1.6%, followed by consumer

discretionary, which was down 1%.

An index of semiconductors was down 2.6%, while

shares of Dell plummeted 18% 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 showed, matching the unrevised gain

in March.

Consumer spending slowed more than expected, the report

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 odds of a second rate cut

in December to about the same probability.

The Dow Jones Industrial Average rose 265.19 points,

or 0.70%, to 38,376.67. The S&P 500 lost 16.37 points, or

0.31%, at 5,219.11 and the Nasdaq Composite fell 210.73

points, or 1.26%, to 16,526.35.

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 7.1% after the security

solutions provider forecast fourth-quarter results above

estimates.

Gap surged 28.5% 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 5.3% 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.

Advancing issues outnumbered decliners by a 2.03-to-1 ratio

on the NYSE and by a 1.24-to-1 ratio on the Nasdaq.

The S&P index recorded eight new 52-week highs and six

new lows, while the Nasdaq recorded

4

8

new highs and 82 new lows.