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

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

condition

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Indexes up: Dow 0.72%, S&P 0.57%, Nasdaq 0.41%

(Updated at 9:35 a.m. ET/ 1335 GMT)

By Shashwat Chauhan and Bansari Mayur Kamdar

March 27 (Reuters) - Wall Street's main stock indexes

ticked higher on Wednesday, with the blue-chip Dow leading gains

in thin trading ahead of crucial economic data, commentary from

the Federal Reserve's policymakers and a long holiday weekend.

The Dow and the S&P 500 recorded their third

consecutive declines in the previous session, as most megacaps

were under pressure and stocks struggled to maintain an upwards

momentum.

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.

"The Fed's Chris Waller may offer a rebuke of Jay Powell's

dovishness today," said Thierry Wizman, global FX & rates

strategist at Macquarie.

"While not dismissing the prospect of a June cut, Waller

may point to sturdy U.S. aggregate demand and 'sticky' inflation

in the January and February data to justify fewer rate cuts than

the median 'dots' imply."

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.

The Dow remains on track to breach the 40,000-point level

for the first time.

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 9:35 a.m. ET, the Dow Jones Industrial Average

was up 283.04 points, or 0.72%, at 39,565.37, the S&P 500

was up 29.65 points, or 0.57%, at 5,233.23, and the Nasdaq

Composite was up 66.90 points, or 0.41%, at 16,382.60.

Leading gains on the Dow, Merck & Co ( MRK ) rose 4.6% after

the U.S. Food and Drug Administration approved its therapy for

adults with high blood pressure due to constriction in lung

arteries.

Trump Media & Technology Group ( DJT ) jumped 18.3%, a day

after its stellar Nasdaq debut.

Robinhood Markets ( HOOD ) climbed 4.6% after the online

trading app launched a new credit card.

GameStop ( GME ) plunged 14.6% 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 5.84-to-1 ratio

on the NYSE and by a 2.77-to-1 ratio on the Nasdaq.

The S&P index recorded 26 new 52-week highs and no new

lows, while the Nasdaq recorded 42 new highs and 22 new lows.