* Indexes: Dow up 0.4%, S&P 500 up 0.1%, Nasdaq flat

* GlobalFoundries ( GFS ) falls on report of Mubadala share sale

* Zscaler ( ZS ) plunges after downbeat Q4 forecast

* Goldman Sachs ( GS ) lifts S&P 500 year-end forecast to 8,000

(Updates to market open)

By Twesha Dikshit and Utkarsh Hathi

May 27 (Reuters) - U.S. stocks were subdued on Wednesday

in choppy trading, as investors remained cautious while awaiting

progress in Middle East talks.

Iran's state TV said Tehran had obtained a draft framework

for an agreement with the U.S. that would restore Strait of

Hormuz shipping within a month in exchange for a U.S. military

pullback and lifting of a naval blockade.

"We're a little bit concerned that the market's going to

test once earnings season is over in totality. Then we have a

lack of news flow, so the market will turn its attention to the

Fed, to the Middle East," said Nancy Tengler, CEO & CIO at

Laffer Tengler Investments.

At 09:57 a.m. ET, the Dow Jones Industrial Average

rose 174.37 points, or 0.35%, to 50,642.33, the S&P 500

gained 2.37 points, or 0.03%, to 7,521.49 and the Nasdaq

Composite lost 3.30 points, or 0.01%, to 26,651.99.

Six of the 11 main S&P 500 sectors were in the positive

territory, with consumer discretionary leading the gains. It was

up 1.4%.

The S&P 500 energy index fell 1.5%, tracking a

decline in oil prices, while tech shares slipped 0.2%

after reaching an all-time high on Tuesday.

Both the S&P 500 and the Nasdaq had closed at record highs

on Tuesday, driven by strong momentum in AI-related stocks, as

Micron Technology ( MU ) crossed $1 trillion in market cap.

Shares of the memory chipmaker rose 3.8%. Peers

Western Digital ( WDC ) and Seagate Technology ( STX ) were up

2.5% and 3.2%, respectively. The Philadelphia SE Semiconductor

index was down 0.7%, with chip giant Nvidia ( NVDA ) falling

1.7%.

A strong earnings season and expectations of about 29%

year-on-year growth in the first quarter have aided the rally on

Wall Street, with the blue-chip Dow Jones becoming the

last major index to hit a record high on Friday.

Goldman Sachs ( GS ) raised its 2026 year-end forecast for the S&P

500 to 8,000 from 7,600, citing continued strength in corporate

earnings.

Markets will next look toward the personal consumption

expenditures index data on Thursday. The Federal Reserve's key

inflation measure could provide fresh clues on the monetary

policy path forward under new chair Kevin Warsh.

Money markets currently expect the Fed to keep rates steady

for the rest of the year, with some pricing in a 25 basis point

hike in December.

Among other movers, Zscaler ( ZS ) tumbled 30% after the cloud

security firm projected fourth-quarter revenue below

expectations.

GlobalFoundries ( GFS ) fell 9% after Bloomberg News

reported that majority owner Mubadala Investment Company was

seeking to raise $1.91 billion from an unregistered block sale

of GFS shares.

Bath & Body Works ( BBWI ) jumped 16.5% after the retailer

reported first-quarter sales and profit above expectations.

Advancing issues outnumbered decliners by a 1.31-to-1 ratio

on the NYSE, and by a 1.15-to-1 ratio on the Nasdaq.

The S&P 500 posted 29 new 52-week highs and 5 new lows,

while the Nasdaq Composite recorded 106 new highs and 44 new

lows.

(Reporting by Twesha Dikshit and Utkarsh Hathi; Editing by

Shinjini Ganguli and Joyjeet Das)