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Weekly jobless claims rise more than expected

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Nvidia ( NVDA ) dips, back to third most valuable company

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Nio falls after logging Q1 net loss

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Lululemon up on topping quarterly estimates on China

demand

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Indexes: Dow up 0.08%, S&P down 0.11%, Nasdaq down 0.14%

(New throughout, updates prices at 2:46 p.m. EDT)

By Lisa Pauline Mattackal and Johann M Cherian

NEW YORK, June 6 (Reuters) -

The S&P 500 and Nasdaq composite slipped on Thursday ahead

of a key labor market report, retreating from record highs

reached in the previous session. The Dow was slightly higher.

Benchmark S&P 500 and Nasdaq rose early and

reached fresh intraday record highs, but then they retreated as

technology stocks dipped.

Nvidia ( NVDA ) shed 2% and was back to being the world's

third most valuable company the day after it jumped ahead of

Apple ( AAPL ) to take second place. Six out of the 11 S&P 500

sectors were declining, led by utilities and

industrials.

Investors will watch Friday's crucial U.S. nonfarm

payrolls report. The weekly jobless claims report was the latest

data to indicate labor market easing, which could allow the Fed

begin cutting rates. The European Central Bank delivered its

first interest rate cut since 2019.

"It's a little bit of a pause before non-farm," said

Bill Strazzullo, chief market strategist at Bell Curve Trading

in Boston. "It's not unusual. We had a big day yesterday and

today people are getting their positions where they want to be

before the payroll number," he said.

Gains in Nvidia ( NVDA ) and other AI-related players have largely

driven Wall Street's rally this year, with the chipmaker

accounting for roughly a third of the S&P 500's over 12%

year-to-date gains.

Traders see a 68% chance of a September rate reduction,

according to the CME's FedWatch tool, and have priced in about

two cuts this year, as per data from LSEG. Forecasters polled by

Reuters also expect two cuts.

"We are in an information vacuum between now and tomorrow,"

said Thomas Hayes, chairman at Great Hill Capital in New York.

"But by and large we have entered a global, coordinated central

bank easing policy in the West that excludes Japan, which will

be tightening" he added.

At 02:46 p.m., the Dow Jones Industrial Average

rose 30.14 points, or 0.08%, to 38,837.47, the S&P 500

lost 5.98 points, or 0.11%, to 5,348.05 and the Nasdaq Composite

lost 24.92 points, or 0.14%, to 17,162.98.

Shares of GameStop ( GME ) surged over 30% after the online

stock influencer known as "Roaring Kitty" posted on YouTube that

he would hold a livestream on Friday.

Lululemon Athletica ( LULU ) rose 4.8% after beating

expectations for first-quarter profit and revenue on Wednesday.

U.S.-listed shares of NIO dropped 6.4%

after the Chinese electric vehicle maker posted a quarterly net

loss.

Five Below ( FIVE ) slumped 11.4% after the discount store

operator trimmed its annual net-sales forecast.

Declining issues outnumbered advancers by a 1.17-to-1 ratio

on the NYSE. On the Nasdaq, 1,615 stocks rose and 2,523 fell as

declining issues outnumbered advancers by a 1.56-to-1 ratio.

The S&P 500 posted 22 new 52-week highs and 5 new lows

while the Nasdaq Composite recorded 54 new highs and 88 new

lows.