US STOCKS-Wall St set to open higher as investors weigh data, Middle East war

* Futures up: Dow 0.58%, S&P 500 0.55%, Nasdaq 0.55%

* US consumer spending, core PCE inflation firmer in January

* Meta down 1.3%; report says AI model 'Avocado' rollout pushed to May or later

* SentinelOne slips 3.7% after bleak forecasts (Updates to before markets open)

By Johann M Cherian and Utkarsh Hathi

March 13 (Reuters) - Wall Street's main stock indexes were set to open higher on Friday, after sharp losses in the previous session, while investors assessed a set of economic data releases to gauge the interest rate outlook as the Middle Eastconflict widens.

The Commerce Department's second estimate showed gross domestic product increased by 0.7% in the previous quarter, lower than the 1.4% growth expected by economists polled by Reuters.

Another report showed the Personal Consumption Expenditure index, the Federal Reserve's preferred inflation gauge, rose 2.8% in January, compared with economists' estimates of a 2.9% rise.

The data did little to change expectations for the Fed's monetary policy trajectory as traders priced in one 25-basis-point interest rate cut later this year, according to LSEG-compiled data, compared with two before the war began on February 28.

"Inflation remains elevated, sticky and with the possibility of energy prices eventually moving into the pipeline, the Fed is likely to stay on hold for a longer period of time," said Peter Cardillo, chief market economist, Spartan Capital Securities.

The Fed will potentially leave interest rates unchanged when it meets next week and spiking energy costs could complicate the central bank's policy plans as other reports point to price pressures and a softening job market.

The University of Michigan's initial estimate on consumer sentiment in March, due at 10 a.m. ET, will show how people are anticipating energy costs to fare in the coming months. Crude prices hovered near $100 a barrel as hostilities in the Middle East showed few signs of easing despite the Trump administration's assurances of a swift resolution. Efforts such as the International Energy Agency's record emergency oil releases, and the U.S. 30-day license for countries to buy Russian oil and petroleum products stranded at sea failed to bring down the surge in costs. At 08:48 a.m. ET, Dow E-minis were up 271 points, or 0.58%, S&P 500 E-minis were up 37 points, or 0.55%, and Nasdaq 100 E-minis were up 134.75 points, or 0.55%.

Wall Street's fear gauge, the CBOE volatility index, wavered and was last down 1.8 points at 25.37, while futures tied to the rate-sensitive Russell 2000 index were up 0.7%.

The three main U.S. indexes were set for their third week in the red with the financials-heavy Dow hit the hardest, putting it on track for its biggest monthly losses since December 2024. Credit quality worries deepened this week after Morgan Stanley (MS) halted redemptions at one of its private credit funds, following similar moves by BlackRock (BLK) and Blue Owl in recent weeks. JPMorgan Chase (JPM) also restricted lending to private credit players, while Blackstone faced a surge in redemptions. Blue Owl's shares edged up 1% in premarket trading, while BlackRock (BLK) edged up 0.8%.

Travel stocks, hit the most by the war and higher energy costs, were marginally higher.

Airlines Alaska and American edged up 0.9% each, along with Carnival and Norwegian Cruise. Design software maker Adobe fell 8.5% as longtime CEO Shantanu Narayen will leave his role once a successor is appointed, renewing worries around its strategy as it grapples with AI disruption. Cybersecurity firm SentinelOne fell 3.7% after forecasting quarterly profit below estimates. Megacap Meta slipped 1.3% as a report said it postponed the release of its artificial intelligence model "Avocado" to at least May, from this month. (Reporting by Johann M Cherian, Utkarsh Hathi in Bengaluru, Stephen Culp in New York; Editing by Maju Samuel and Devika Syamnath)