02:18 PM EDT, 04/30/2025 (MT Newswires) -- US benchmark equity indexes were lower intraday after official data showed the economy contracted in the first quarter, while markets awaited Microsoft ( MSFT ) and Meta Platforms' ( META ) earnings.

The Nasdaq Composite was down 1.4% at 17,209 after midday Wednesday, while the S&P 500 dropped 0.9% to 5,511.7. The Dow Jones Industrial Average fell 0.5% to 40,316.8. Among sectors, energy saw the steepest decline, while only consumer staples and health care were in the green.

In economic news, US real gross domestic product decreased at an annual rate of 0.3% in the March quarter, representing the first drop since the first quarter of 2022, according to an advance estimate by the Bureau of Economic Analysis. The consensus was for a 0.2% decline in a survey compiled by Bloomberg.

"The US economy's modest contraction in (the first quarter) was mostly due to temporary issues, but the trade war will weigh this year," BMO Capital Markets said. "Weaker exports and intense uncertainty will hold the economy back in the next couple of quarters."

Separately, Wells Fargo Investment Institute said it continues to expect the world's largest economy to "skirt a recession" this year amid "an unusual set of supports."

A separate government report showed that US personal consumption expenditures rose 0.7% in March, surpassing the Bloomberg-polled consensus for a 0.6% increase. The Federal Reserve's preferred inflation metric -- core PCE price index -- cooled down to 2.6% annually from February's 3% growth, meeting the Bloomberg consensus.

Pending home sales in the US rose at the fastest monthly pace since December 2023 in March as mortgage rates fell, according to the National Association of Realtors.

Mortgage application volume fell last week as refinancing and purchase activity declined, the Mortgage Bankers Association said.

"Mortgage application activity, particularly for home purchases, continues to be subdued by broader economic uncertainty and signs of labor market weakness, dropping to the slowest pace since February," said Joel Kan, MBA deputy chief economist.

US Treasury yields were lower intraday, with the two-year rate losing 3.1 basis points to 3.63% and the 10-year rate falling one basis point to 4.17%.

Tech giants Microsoft ( MSFT ) and Meta are scheduled to report their latest quarterly financial results after the closing bell Wednesday, along with other major names such as Qualcomm ( QCOM ) and Equinix ( EQIX ) .

In company news, Super Micro Computer ( SMCI ) shares plunged 15%, the worst performer on the S&P 500. The artificial intelligence server maker lowered its fiscal third-quarter financial outlook late Tuesday.

Newell Brands ( NWL ) on Wednesday issued a downbeat second-quarter earnings outlook and downgraded its full-year core sales guidance, citing a challenging macroeconomic backdrop. The company's shares were down 7.3% intraday.

Western Digital ( WDC ) was among the best performers on the S&P 500, up 6.9%, after the data storage products maker logged double-digit growth in fiscal third-quarter revenue and outlined an above-consensus guidance for the final three months of the year.

West Texas Intermediate crude oil was down 3.4% at $58.38 a barrel intraday. Crude WTI futures are headed for a monthly loss of 18%.

Gold was down 0.5% at $3,318.40 per troy ounce, while silver slumped 2.2% to $32.55 per ounce.