* Indexes up: Dow 0.75%, S&P 500 0.32%, Nasdaq 0.28%

* Gap plunges after slashing sales forecast

* S&P 500 tech index at all time highs

* All three indexes on track to end the week and month

higher

(Updates with prices, analyst comment)

By Twesha Dikshit and Utkarsh Hathi

May 29 (Reuters) - Major Wall Street indexes extended

their record run on Friday and were headed for weekly and

monthly gains as Dell results drove tech shares higher, while

investors awaited details on a potential U.S.-Iran deal.

President Donald Trump said in a social media post that he

would make a final decision on the deal on Friday. Tehran

earlier said it was looking for action, not words when it came

to an agreement.

Dell jumped almost 30% after raising its full-year

profit and revenue forecasts on Thursday. The tech sector

climbed up 1.8%, led by gains in chip stocks.

Peers Hewlett Packard Enterprise ( HPE ) and Super Micro

Computer ( SMCI ) gained 15.5% and 12.7%, respectively.

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.

"We certainly haven't seen the last of AI optimism. It's

particularly on the strength of first-quarter earnings," said

Melissa Brown, head of investment decision research at SimCorp.

"What we've seen over the past few weeks is volume going up,

which suggests we've got more people coming in. Some people call

it FOMO and once that rally gets going, people want to

participate."

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

gain, its longest winning streak since December 2023.

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

S&P 500 communications services sector fell 1.3%, as

Alphabet dropped 1.7%.

Consumer staples shares tumbled 2.2% with

bigweights Costco and Walmart ( WMT ) down over 3.5%

each.

The S&P automaker index dropped 1.4% after

reports the Trump administration wants North American-built

vehicles to have 82% regional content to qualify for

preferential treatment under the U.S.-Mexico-Canada Agreement.

General Motors ( GM ) and U.S.-listed shares of Stellantis

were down about 2% each.

The software services index advanced 5%, erasing

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

had weighed on the sector.

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

rose 377.38 points, or 0.75%, to 51,044.40, the S&P 500

gained 23.64 points, or 0.31%, to 7,587.03 and the Nasdaq

Composite gained 72.03 points, or 0.26%, to 26,988.24.

The small-cap Russell 2000 index was down 0.7%.

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.

The Fed's Kansas President Jeffrey Schmid warned that the

energy shock may not be temporary; Vice Chair for Supervision,

Michelle Bowman, said 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 17.3% after

the apparel retailer cut its annual sales forecast, while

American Eagle Outfitters ( AEO ) dropped 12.6% after keeping

its annual comparable sales forecast unchanged.

Advancing issues outnumbered decliners by a 1.19-to-1 ratio

on the NYSE and by a 1.04-to-1 ratio on the Nasdaq.

The S&P 500 posted 22 new 52-week highs and seven new lows

while the Nasdaq Composite recorded 90 new highs and 39 new

lows.

(Reporting by Twesha Dikshit and Utkarsh Hathi; Editing by

Joyjeet Das and Devika Syamnath)