Gap Inc GPS.N and American Eagle Outfitters AEO.N fell 3.6% and 3.4% respectively, after the clothing retailers trimmed their annual profit forecasts amid decades-high inflation. By Devik Jain and Anisha Sircar May 27 (Reuters) - U.S. stocks rallied on Friday, boosted by upbeat earnings, strength in consumer spending and signs that inflation was peaking, easing worries about a sharp slowdown in economic growth. "If the consumer is able to keep spending and the prior number was revised up, that's good news," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.