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

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

*

NYSE Equities says technical glitch resolved

*

US factory activity slips for a second month in May, ISM

says

*

Nvidia ( NVDA ) up as next-gen AI chip platform to be rolled out in

2026

*

GameStop ( GME ) soars after Keith Gill's Reddit post shows $116

mln bet

*

Indexes: Dow down 0.83%, S&P down 0.43%, Nasdaq down 0.02%

(Updated at 12:16 pm ET/1616 GMT)

By Lisa Pauline Mattackal and Johann M Cherian

June 3 (Reuters) -

Wall Street's main indexes were lower in choppy trading on

Monday after data showed signs of weakness in the manufacturing

sector and investors grappled with technical problems on the

NYSE.

A

technical issue

related to Limit Up-Limit Down bands on the NYSE showed

unusual movements and sent dozens of stocks listed on the

exchange into volatility pauses. NYSE Equities said the issue

had been resolved and the affected stocks were in the process of

reopening.

Also weighing on sentiment, a

survey from the Institute for Supply Management

showed U.S. manufacturing activity eased to 48.7 in May,

lower than the expectation of 49.6.

The Dow extended losses, the S&P 500

turned lower and the Nasdaq pared early gains, though

falling Treasury yields initially helped lift megacap stocks.

AI leader Nvidia ( NVDA ) rose 3.3% after CEO Jensen

Huang said on Sunday that the company's next-generation AI chip

platform would be rolled out in 2026.

Shares of megacaps including Apple ( AAPL ) and Meta

gained between 0.8% and 2.1%, as yields on the

benchmark U.S. 10-year and five-year notes fell around 10 basis

points each.

GameStop ( GME ) soared 24.1% after a weekend Reddit post

from stocks influencer Keith Gill, also known as "Roaring

Kitty", showed a $116 million bet on the gaming retailer.

"The way we closed Friday was so powerful to the upside

that we may have had to work off some steam from that. Throw

meme stocks and a technical glitch into the mix, and it's no

wonder that markets are bouncing around a little bit today,"

said Bret Kenwell, US investment and options analyst at eToro

USA.

All three of Wall Street's main indexes ended May with

strong gains, with the S&P 500 up 4.8%, the Dow gaining 2.3% and

the tech-heavy Nasdaq rising nearly 7% on the month, as strong

earnings and hopes of easing monetary policy buoyed Wall

Street's biggest stocks.

Traders see a 59% chance that the Fed will begin cutting

rates in September, up from about 53% before the ISM data was

released, according to the CME's FedWatch tool.

Attention turns to a data-packed week that includes

surveys on the services sector, factory orders and Friday's

closely watched nonfarm payrolls report, providing investors

with clues on the health of the U.S. economy and the Fed's

likely course of action.

"There may well be a rate cut in September... this will

be a week that is full of economic data that'll be important and

today was just the first step," said Art Hogan, chief market

strategist at B. Riley Financial.

At

12:16

a.m. ET, the Dow Jones Industrial Average

was down 321.96 points, or 0.83%, at

38,364.36

, the S&P 500

was down 22.43 points, or 0.43%, at

5,255.08

, and the Nasdaq Composite

was down 3.45 points, or 0.02%, at

16,731.56

.

The Dow underperformed, with losses in financial stocks

such as Goldman Sachs ( GS ) and JPMorgan Chase & Co ( JPM )

being the biggest drags on the blue-chip index.

Declining issues outnumbered advancers

by

a 1.18-to-1 ratio on the NYSE

and

by

a 1.13-to-1 ratio on the Nasdaq

.

The S&P index recorded

23

new 52-week highs and three new lows, while the Nasdaq

recorded

57

new highs and

77

new lows.