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

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

*

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

*

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

condition

*

Megacap growth stocks, chipmakers recover

*

Futures up: Dow 0.37%, S&P 0.35%, Nasdaq 0.38%

(Updated at 8:20 a.m. ET/ 1220 GMT)

By Shashwat Chauhan and Bansari Mayur Kamdar

March 27 (Reuters) -

Wall Street's main stock indexes were set to gain at open on

Wednesday as chipmakers and growth stocks rebounded in light

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 on Tuesday, as most megacaps were pressured

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 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.

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

artificial intelligence-inspired rally helped Wall Street reach

record highs recently and optimism about the Fed cutting

borrowing costs later in the year added to gains.

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

in June, according to the CME FedWatch tool.

"The market is just doing a little bit of consolidation...

people are just wondering what's the next catalyst to drive

stock prices," said Robert Pavlik, senior portfolio manager at

Dakota Wealth Management.

"The focus on AI is just continuing to power interest in

technology, and especially the semiconductors and the companies

that make AI happen."

At 8:20 a.m. ET, Dow e-minis were up 145 points, or

0.37%, S&P 500 e-minis were up 18.25 points, or 0.35%,

and Nasdaq 100 e-minis were up 70.25 points, or 0.38%.

Most megacap growth stocks rose in trading before the bell,

with Tesla adding about 1% and AI-giant Nvidia ( NVDA )

advancing 0.5%.

Several chip stocks also gained, with Micron Technology ( MU )

inching up 0.5%, while Marvell Technology ( MRVL ) jumped

4.1%.

Moderna ( MRNA ) added 3.9% after the biotech firm said it

had entered into an agreement with private equity firm

Blackstone's life science investment platform for $750

million in funding to develop its mRNA flu vaccines.

Merck & Co ( MRK ) gained 5.2% 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 13.2%, a day

after its stellar Nasdaq debut.

Robinhood Markets ( HOOD ) climbed 7% after the online

trading app launched a new credit card.

GameStop ( GME ) dropped 18.1% after the videogame retailer

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

unspecified number of jobs to reduce costs.