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* US PCE inflation rises 2.7% YoY in April

* Dell plunges after lower current-quarter profit forecasts

* Trump Media & Technology Group rises after Trump conviction

* Futures up: Dow 0.19%, S&P 0.34%, Nasdaq 0.32%

May 31 (Reuters) -

Wall Street's main indexes were set to rise on Friday, after latest data showed inflation in the world's largest economy rose largely in line with expectations, fanning hopes for forthcoming rate cuts from the Federal Reserve.

Futures reversed early losses after a Commerce Department report showed the Personal Consumption Expenditure index, the Fed's preferred inflation gauge, rose 0.3% in April, in line with analysts' expectations and unchanged from the previous month. Annually, it stood at 2.7%, also meeting expectations, while the so-called core PCE rose 0.2% on a monthly basis, slightly softer than expectations of 0.3%.

Rate-sensitive megacap growth names such as Microsoft , Apple and Nvidia inched up between 0.8% and 2.4% in trading before the bell, as U.S. bond yields slipped after the data.

Expectations for a September rate cut climbed to over 50%, compared with 48.7% seen before the data. The odds had stayed below 50% for most of the week, according to the CME FedWatch tool.

"We shouldn't go overboard. What we've got is after a few months of rising, (inflation) is finally going sideways and hopefully we'll resume a downtrend as we go forward... but markets will be relieved because they are living in fear of bad numbers at the moment," said Marc Ostwald, chief economist and global strategist at ADM Investor Services International.

Wall Street pulled back this week after a recent rally, with the benchmark S&P 500 index and the tech-heavy Nasdaq on track for their first weekly losses in six. A spike in Treasury yields pressured riskier assets, following a weak debt auction and protracted worries of sticky inflation.

An almost 20% plunge in Salesforce shares on Thursday also weighed on the tech sector, dragging the Dow to a nearly one-month low and the S&P 500 to its lowest in two weeks. The cloud firm's shares recovered 0.7% on the day.

Policymakers have shown no urgency to ease borrowing costs, while stressing that inflation would fall this year, even as the labor market stays strong.

However, Thursday's revision in first-quarter economic growth on softer consumption assuaged some fears, as bond yields slipped from multi-week highs.

Comments from Atlanta President Raphael Bostic, a Federal Open Market Committee voting member, are also expected later in the day.

At 8:52 a.m. ET, Dow e-minis were up 78 points, or 0.19%, S&P 500 e-minis were up 17.75 points, or 0.34%, and Nasdaq 100 e-minis were up 560.75 points, or 0.32%.

Among big movers, Dell plunged 16% 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.

Zscaler jumped 15.7% after the security solutions provider forecast fourth-quarter results above estimates.

Gap surged 25.2% after the apparel maker raised its annual sales forecast and its first-quarter results beat market expectations, in fresh signs that its turnaround strategy to bring in newer styles was starting to work.

Trump Media & Technology Group climbed 5.5%. A New York jury convicted former President Donald Trump of falsifying documents to cover up a payment to silence a porn star ahead of the 2016 election. (Reporting by Johann M Cherian and Lisa Pauline Mattackal in Bengaluru; Editing by Pooja Desai)