* Indexes up: Dow 0.3%, S&P 500 0.4%, Nasdaq 0.6%

* Dell jumps after lifting forecast

* Gap plunges after slashing sales forecast

* All three indexes on track to end the month higher

(Updates after market open)

By Twesha Dikshit and Utkarsh Hathi

May 29 (Reuters) - Wall Street's major indexes extended

their record run, heading for weekly and monthly gains on

Friday, as gains in tech stocks and reports the U.S. and Iran

had reached a deal fanned investor optimism.

The tech sector jumped 2.2%, led by gains in chip

stocks.

Dell surged 34.7% after raising its full-year

profit and revenue forecasts on Thursday. Peers Hewlett Packard

Enterprise ( HPE ) and Super Micro Computer ( SMCI ) gained

13.6% and 17%, respectively.

Sources told Reuters that Washington and Tehran had agreed

to extend their ceasefire and lift restrictions on shipping

through the Strait of Hormuz, but President Donald Trump was yet

to approve it.

All three indexes hit intraday record highs, cruising on

renewed optimism around AI and strong earnings growth, despite

some concerns about the Iran war's impact on inflation and the

global economy.

"Markets are ending May with a risk-on bias, driven by AI

enthusiasm, lower oil prices and growing expectations that

U.S.-Iran tensions may remain contained, thanks to an extended

ceasefire framework," said Bob Savage, head of markets macro

strategy at BNY.

Nine of the 11 main S&P 500 sectors were in the red. The S&P

500 communications services sector was down 1.2%, as

Alphabet dipped 1.5%.

The Philadelphia SE Semiconductor Index, which has

gained more than 70% for the quarter, was up 1.7%.

The software services index rose almost 4%,

erasing all losses since January-end, when concerns over AI

disruption had weighed on the sector.

The S&P 500 was on track for a ninth consecutive weekly

gain, its longest winning streak since December 2023. The Dow

Jones and the Nasdaq were also set to end the

week higher. All three indexes are set to log a second straight

month of gains.

At 10:05 a.m. ET, the Dow Jones Industrial Average

rose 151.04 points, or 0.30%, to 50,820.01, the S&P 500

gained 31.69 points, or 0.41%, to 7,594.98 and the Nasdaq

Composite gained 156.47 points, or 0.58%, to 27,073.94.

U.S. economic data on Thursday showed inflation increased at

its fastest pace in three years in April, while GDP for the

first quarter was revised lower to a 1.6% annual rise.

"At the same time, central banks are still focused on

inflation risks, with ECB and Fed officials warning that supply

shocks and elevated inflation expectations could keep rate hikes

in play as growth sentiment improves," Savage added.

The Fed's Kansas President Jeffrey Schmid warned that the

energy shock may not be temporary, while Vice Chair for

Supervision Michelle Bowman said that a persistent rise in

inflation might require tighter monetary policy.

Money markets expect the Federal Reserve to keep interest

rates steady for the rest of the year, with some expectations of

a 25-basis-point hike in December.

Among other movers, Gap shares tumbled 17.7% after

the apparel retailer cut its annual sales forecast, while

American Eagle Outfitters ( AEO ) dropped 14.9% after keeping

its annual comparable sales forecast unchanged.

Okta ( OKTA ) jumped 21% after the digital identity verification

firm posted first-quarter revenue above expectations.

Declining issues outnumbered advancers by a 1.05-to-1 ratio

on the NYSE and by a 1.03-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and 6 new lows while

the Nasdaq Composite recorded 76 new highs and 24 new lows.

(Reporting by Twesha Dikshit and Utkarsh Hathi; Editing by

Joyjeet Das and Devika Syamnath)