(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Merck ( MRK ) up after US FDA approves therapy for rare lung

condition

*

Trump's media firm extends gains after stellar debut

*

GameStop ( GME ) faces 'unsustainable' sales decline, shares slide

*

Indexes: Dow up 0.59%, S&P up 0.29%, Nasdaq down 0.03%

(Updated at 11:42 a.m. ET/ 1542 GMT)

By Shashwat Chauhan and Bansari Mayur Kamdar

March 27 (Reuters) -

The Dow outpaced Wall Street peers in lean trading on

Wednesday, boosted by strong gains in drugmaker Merck ( MRK ), while

investors awaited crucial economic data and commentary from the

central bank's policymakers with the long holiday weekend

approaching.

Merck & Co ( MRK ) advanced 3.7% after the U.S. Food and

Drug Administration approved its therapy for adults suffering

from a rare lung condition.

At current levels, the blue-chip Dow is around 1% shy of the

40,000-point mark, which it has never breached.

Weighing on the tech-heavy Nasdaq, AI giant

Nvidia ( NVDA ) shed 3.1%, leading losses among megacap growth

peers.

The Philadelphia Semiconductor Index, however,

inched higher, with Marvell Technology ( MRVL ) among the top

gainers, up 4.4%.

Investors looked forward to comments from Fed Board

Governor Christopher Waller, who is set to speak at the Economic

Club of New York later in the day.

All three major U.S. stock indexes eye quarterly gains as an

artificial intelligence-fueled rally helped Wall Street reach

record highs recently. Optimism about the Fed cutting borrowing

costs later in the year also added to gains.

Traders see a 70% chance the Fed will begin its easing cycle

in June, according to the CME FedWatch tool.

The Personal Consumption Expenditures Price Index (PCE), the

Fed's preferred inflation gauge, is due on Good Friday, when the

U.S. stock market will be closed. An upside surprise to

inflation could potentially dampen market enthusiasm around

early rate cuts.

Also on tap this week is the final fourth-quarter GDP print,

the University of Michigan's reading of consumer sentiment and

weekly jobless claims data.

At 11:42 a.m. ET, the Dow Jones Industrial Average

was up 231.38 points, or 0.59%, at 39,513.71, the S&P 500

was up 15.24 points, or 0.29%, at 5,218.82, and the Nasdaq

Composite was down 5.61 points, or 0.03%, at 16,310.09.

Nine of the 11 major S&P 500 sectors were trading

higher, with utilities and real estate

leading gains, while information technology lagged.

"We're in a strong bull market... this is kind of a lull

in the bull market (today) because there's very few catalysts,"

said Jay Hatfield, portfolio manager at Infrastructure Capital

Advisors in New York.

"What you are seeing is a back-and-forth in buying and

alternating between tech and value stocks."

Among individual stocks, Trump Media & Technology Group ( DJT )

jumped 17.8%, a day after its stellar Nasdaq debut.

Robinhood Markets ( HOOD ) climbed 3% after the online

trading app launched a new credit card.

Cintas Corp ( CTAS ) advanced 9.2% after the uniform rental

firm raised its forecasts for annual revenue and profit.

GameStop ( GME ) plunged 13.7% after the videogame retailer

reported lower fourth-quarter revenue and said it had cut an

unspecified number of jobs to reduce costs.

Advancing issues outnumbered decliners by a 3.11-to-1 ratio

on the NYSE and by a 2.00-to-1 ratio on the Nasdaq.

The S&P index recorded 38 new 52-week highs and no new lows,

while the Nasdaq recorded 69 new highs and 57 new lows.