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PCE index up 0.6% m-o-m in Jan after 0.2% rise in Dec

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Boeing slides on 787 Dreamliner jets temporary halt

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Adobe falls as DoJ to block Figma deal - report

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Indexes down: Dow 0.91%, S&P 1.04%, Nasdaq 1.56%

Feb 24 (Reuters) - Wall Street's main indexes tumbled on Friday, on course for their worst weekly performance of the year, as data signaling strong consumer spending and inflation sparked worries that the Federal Reserve will stick to its hawkish stance for longer.

All the three indexes were set for weekly declines of around 3% each, with the blue-chip Dow on track for its biggest weekly decline in five months.

After a strong performance in January, stocks have retreated this month as a slew of economic data amplified worries that the U.S. central bank might have to keep rates higher for longer amid signs of sticky inflation and a resilient labor market.

Data on Friday showed the personal consumption expenditures (PCE) price index, the Fed's preferred gauge of inflation, shot up 0.6% last month after gaining 0.2% in December.

Another set showed consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 1.8% last month, higher than the economists' forecast of a 1.3% rise.

"The headline and core PCE numbers were well above expectations. What worries us most is that the data since the last Fed meeting has been extremely strong," said Gene Goldman, chief investment officer at Cetera Investment Management.

"If the Fed had this data at the last meeting they probably would've raised by 50 bps and the tone from the press conference would've been a lot different."

Traders of futures tied to the Fed's policy rate added to bets that the central bank will raise rates at least three more times this year, with the peak rate seen in the range of 5.25%-5.5% by June.

Cleveland Fed President Loretta Mester said the Fed should err on raising interest rates higher than necessary if need be in order to get inflation fully under control.

At 11:52 a.m. ET, the Dow Jones Industrial Average was down 302.42 points, or 0.91%, at 32,851.49, the S&P 500 was down 41.64 points, or 1.04%, at 3,970.68, and the Nasdaq Composite was down 181.32 points, or 1.56%, at 11,409.09.

All the 11 major S&P sectors fell, with technology and consumer discretionary indexes leading losses.

Megacap stocks including Tesla Inc, Amazon.com Inc and Nvidia Corp slid in the range of 1.3% and 2.3% as Treasury yields rose.

The yield on two-year Treasury notes, which are highly sensitive to Fed policy, climbed to 4.826% - its highest in nearly four months.

Boeing Co slid 4.3% after the Federal Aviation Administration said the planemaker temporarily halted deliveries of its 787 Dreamliner jets.

Beyond Meat Inc surged 13.5% as the plant-based meat maker's results indicated that its cost-control measures were finally bearing fruit.

Adobe Inc sank 7.3% on reports the U.S. Justice Department would block the Photoshop maker's $20 billion bid for cloud-based designer platform Figma.

Declining issues outnumbered advancers for a 4.28-to-1 ratio on the NYSE and 3.19-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week highs and seven new lows, while the Nasdaq recorded 26 new highs and 131 new lows. (Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru, additional reporting by Sinead Carew; Editing by Arun Koyyur and Sriraj Kalluvila)