* Futures up: Dow 0.26, S&P 500 0.12%, Nasdaq 0.07%

* Dell jumps after lifting forecast

* Gap plunges after slashing sales forecast

* All three indexes on track to end the month higher

(Updates before market open)

By Twesha Dikshit and Utkarsh Hathi

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

to extend gains on Friday, after closing at record highs the

previous session, with markets awaiting details on reports that

the U.S. and Iran had reached a deal.

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.

"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.

"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."

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 08:10 a.m. ET, Dow E-minis were up 134 points, or

0.26%, S&P 500 E-minis were up 9.25 points, or 0.12%,

and Nasdaq 100 E-minis were up 21.5 points, or 0.07%.

Wall Street's major indexes have been on a record run,

driven by renewed optimism around AI and strong earnings growth,

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

global growth.

Dell surged 33.6% before the bell, after raising

its full-year profit and revenue forecasts on Thursday. Peers

Hewlett Packard Enterprise ( HPE ) and Super Micro Computer ( SMCI )

gained 12.4% and 7.7%, respectively.

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.

U.S. central bankers have said in recent days that there

might be a case for raising interest rates if inflation does not

ease soon, while expressing skepticism over AI's ability to aid

that process.

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.

Investors will keep an eye on comments from Fed presidents

Anna Paulson, Neel Kashkari and Mary Daly through the day to

gauge the monetary policy path forward.

Among other movers, Gap shares tumbled 15.5% after

the apparel retailer cut its annual sales forecast, while

American Eagle Outfitters ( AEO ) dropped 11.4% after keeping

its annual comparable sales forecast unchanged.

Okta ( OKTA ) jumped 10.3% after the digital identity

verification firm posted first-quarter revenue above

expectations.

(Reporting by Twesha Dikshit and Utkarsh Hathi; Editing by

Joyjeet Das and Devika Syamnath)