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Reddit ( RDDT ) gains on OpenAI partnership

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GameStop ( GME ) expects Q1 revenue to drop, shares tumble

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AMD up as Microsoft ( MSFT ) offers AMD option to Nvidia AI

processors

(Updates to 4 p.m. ET)

By Chibuike Oguh and Shristi Achar A

NEW YORK, May 17 (Reuters) - U.S. stocks ended mixed on

Friday as investors took a breather after a weeks-long rally

underpinned by data that supported expectations for interest

rate cuts by the Federal Reserve this year.

The benchmark S&P 500 edged higher after paring

losses while the Nasdaq fell, but both scored a fourth

straight week of gains. The Dow rose to end the fifth

week of advances in a row.

Strong corporate results and inflation and other economic

data have bolstered investor hopes for Fed rate cuts this year.

All three main indexes touched record highs on Thursday,

when the Dow hit the 40,000 milestone before closing in the red.

"Today is a bit of a digestion day: we just broke out

through record highs and now we're on a fourth straight week of

gains, and the market appears to take a breaker," said Keith

Lerner, co-chief investment officer at Truist Advisory Services

in Atlanta.

Traders see a 68% chance of the Fed's first rate cut in

September, the CME FedWatch Tool showed.

According to preliminary data, the S&P 500

gained 6.79 points, or 0.13%, to end at 5,303.89 points,

while the Nasdaq Composite lost 12.35 points, or 0.07%,

to 16,685.97. The Dow Jones Industrial Average

rose 141.50 points, or 0.35%, to 40,010.88.

"For all the times that I've seen the market hit milestones

and new highs, there's almost always consolidation around it

even though it seems it's all psychological," said Tom Plumb,

chief executive and portfolio manager at Plumb Funds in Madison,

Wisconsin.

"People have got mixed signals on inflation this week

and the next big catalyst is next week when Nvidia ( NVDA ) reports. So

it's one of those days when you seem to be biding your time."

Advanced Micro Devices ( AMD ) gained after Microsoft ( MSFT )

said it plans to offer its cloud computing customers a

platform of AMD artificial intelligence chips that will compete

with components made by Nvidia ( NVDA ).

Reddit ( RDDT ) rose following a partnership with OpenAI to

bring its content to ChatGPT.

GameStop ( GME ) dropped after filing for a mixed-shelf

offering and saying it expects first-quarter net sales to drop

from a year ago.