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

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

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Nonfarm Payrolls increase 272,000 in May versus 185,000

forecast

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GameStop ( GME ) slides as 'Roaring Kitty' returns to YouTube

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Nvidia falls; market cap back below $3 trillion

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Lyft ( LYFT ) gains after forecasting annual growth in bookings

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Indexes up: Dow 0.17%, S&P 0.14%, Nasdaq 0.03%

(Updated at 12:10 p.m. ET/1410 GMT)

By Lisa Pauline Mattackal and Johann M Cherian

June 7 (Reuters) -

U.S. stock indexes struggled for direction amid choppy

trading on Friday, but remained on track for weekly gains as

markets juggled conflicting economic data and looked ahead to a

central bank meeting next week for clues on the monetary policy

outlook.

The Labor Department's closely watched

Nonfarm Payrolls

report showed the economy added 272,000 jobs in May, far

more than expected, while average hourly earnings beat

expectations.

That sent stocks lower initially, as traders slashed

bets on a September rate reduction. However, indexes pared

losses after other data pointed to underlying economic weakness.

The unemployment rate rose more than expected, to 4%,

while a survey of U.S. households showed a 408,000 decline in

employment. Nonfarm Payroll numbers for April and March were

revised lower.

"The bulls, the bears, the doves and the hawks all have

something to latch on to... from a market perspective, this

perhaps allays some fears about growth moderating too

aggressively," said Garrett Melson, portfolio strategist at

Natixis Investment Managers.

Rate-sensitive real-estate stocks slipped

0.3

%, while financial stocks rose

0.6

% to lead sector gains.

All three major indexes were on track for weekly gains,

with the Nasdaq set for a weekly rise of 2.6%, its best

week in five.

Traders now see a 56% chance of a September rate reduction,

according to the CME's FedWatch tool.

Fresh U.S. inflation data is due next week, just before

the Federal Reserve ends its two-day policy meeting on June 12.

Traders will await updated economic and policy forecasts for

further clues on the timing and pace of future cuts.

"No one expects the Fed to cut (rates next week), but

will they open the door for a cut as soon as September is the

big question on everyone's mind," said Ryan Detrick, chief

market strategist at the Carson Group, adding he still sees a

September reduction on the table.

At 12:10 a.m. ET, the Dow Jones Industrial Average

was up 67.77 points, or 0.17%, at 38,953.94, the S&P 500

was up 7.30 points, or 0.14%, at 5,360.26, and the Nasdaq

Composite was up 4.96 points, or 0.03%, at 17,178.08.

GameStop ( GME ) dropped 22.8% in volatile trading as

stock influencer "Roaring Kitty" kicked off his first livestream

in three years after the company announced a potential stock

offering and a drop in quarterly sales.

Other so-called meme stocks also fell, with AMC

Entertainment ( AMC ) and Koss Corp ( KOSS ) down 5.1% and 8.4%,

respectively.

AI darling Nvidia slipped 0.8%, on track to

extend the previous session's losses, with its valuation again

dipping below the $3 trillion mark.

The chipmaker's highly anticipated 10-for-1 share split

is due after markets close and could make the more-than-$1,000

stock cheaper for investors.

Lyft ( LYFT ) shares rose 0.3%, following a forecast of 15%

annual growth in its gross bookings through 2027 after markets

closed on Thursday.

Declining issues outnumbered advancers by a 2.56-to-1

ratio on the NYSE, and by a 2.03-to-1 ratio on the Nasdaq.

The S&P index recorded 16 new 52-week highs and five new

lows, while the Nasdaq recorded 29 new highs and 99 new lows.