(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.)

* Adobe up after lifting full-year revenue forecast

* Arm shares gain as stock to join Nasdaq 100 index

* US consumer sentiment ebbs in June; inflation worries linger

* Dow set to fall on the week

* Indexes off: Dow 0.77%, S&P 0.42%, Nasdaq 0.10%

June 14 (Reuters) -

U.S. stocks slipped on Friday, with the S&P 500 and Nasdaq indexes taking a breather after consecutive sessions of record highs, as investors weighed hawkish Federal Reserve projections against the backdrop of a cooling economy.

Limiting losses on the tech-heavy Nasdaq, Adobe jumped


%, on track to mark its biggest one-day jump in four years after the company

raised its annual revenue forecast

on more demand for its artificial intelligence-powered software.

Markets have persisted with expectations of a September start to policy easing - seeing an over 70% chance of a cut at that meeting, as per the CME's FedWatch tool - while traders are pricing in two cuts by year-end.

However, that clashed with the central bank's own forecasts released on Wednesday, where policymakers dialed back their projections for three cuts this year to just one.

"Investors think the Fed's data was already somewhat out of date," said Ross Mayfield, investment strategy analyst at Baird, referring to softer consumer price inflation data earlier in the week.

Cleveland Fed President Loretta Mester said

the trend lower is good news

for the economy and the central bank.

Hopes of easing Fed policy, combined with megacaps' strength, have seen major indexes rally, with the S&P 500 and the Nasdaq on pace for their seventh week of gains out of eight.

However, this has raised some concerns about the sustainability of equity strength, especially if economic recession risks grow, with the blue-chip Dow on track to end the week lower.

"The market is also just pricing in a probability, even if it's a small one, of a second half recession where the Fed has to cut rates a lot," Mayfield said.

Adding to the gloom, a preliminary University of Michigan survey showed a Consumer Sentiment Index slipped to 65.6 in June, sharply lower than expectations of 72.

At 10:06 a.m. ET, the Dow Jones Industrial Average was down 298.48 points, or 0.77%, at 38,348.62, the S&P 500 was down 22.72 points, or 0.42%, at 5,411.02, and the Nasdaq Composite was down 17.10 points, or 0.10%, at 17,650.46.

Nine of the 11 S&P 500 sectors were in declines, led by a


% slide in industrials, and the economically sensitive small-cap Russell 2000 index lost



Among others, Broadcom extended Thursday's gains with a 2.2% rise after announcing an upbeat forecast and a 10-for-one stock split.

Sirius XM slipped 1.2% after the Nasdaq said the stock would be removed from the Nasdaq 100 index, and replaced with Arm Holdings. Shares of Arm rose 4.9%.

Comments from Chicago Fed President Austan Goolsbee and Fed Governor Lisa Cook are also expected on Friday.

A BofA Global Research report showed U.S. value stock funds saw $2.6 billion of outflows, while investors poured $1.8 billion into U.S. growth stock funds in the week to Wednesday.

Declining issues outnumbered advancers for a 3.49-to-1 ratio on the NYSE


for a 2.81-to-1 ratio on the Nasdaq


The S&P index recorded four new 52-week highs and


new lows, while the Nasdaq recorded


new highs and


new lows.

(Reporting by Lisa Mattackal and Johann M Cherian in Bengaluru; Editing by Maju Samuel)