04:56 PM EDT, 05/29/2024 (MT Newswires) -- US benchmark equity indexes declined Wednesday as markets awaited an updated reading on first-quarter economic growth due Thursday.

The Dow Jones Industrial Average declined 1.1% to 38,441.5, while the S&P 500 fell 0.7% to 5,267. The Nasdaq Composite lost 0.6% to 16,920.6 after closing above the 17,000 level for the first time in the previous session. All sectors posted losses, led by energy, industrials and materials.

Official data are likely to show Thursday that the US economy grew at an annual rate of 1.3% in the March quarter, compared with a previously reported 1.6% gain, according to a Bloomberg-compiled consensus.

The US saw continued expansion in economic activity from early April to mid-May, though conditions varied across districts and industries, the Federal Reserve said in its latest Beige Book released Wednesday.

"Overall outlooks grew somewhat more pessimistic amid reports of rising uncertainty and greater downside risks," according to the report, which was prepared by the Dallas Fed based on information collected by May 20.

Manufacturing activity in the US Mid-Atlantic region unexpectedly rebounded to a breakeven level this month as shipments rallied, the Richmond Fed said.

Mortgage applications in the US declined as rates increased for the first time in four weeks, the Mortgage Bankers Association said.

The US 10-year yield rose 7.4 basis points to 4.62% Wednesday, while the two-year rate gained 1.8 basis points to 4.98%.

The probability of US monetary policymakers increasing the benchmark lending rate is "quite low, but I don't want to take anything off the table," Bloomberg News reported Tuesday, citing Minneapolis Fed President Neel Kashkari.

"Kashkari is the latest in a number of Fed officials to suggest not just a broader message of patience, but to quantify that message as a need for not just several, but 'many' months of improving data, suggesting an even higher bar than before for the Fed to gain the needed confidence to move forward with rate cuts," Stifel said in a Wednesday note.

West Texas Intermediate crude oil fell 1% to $79.07 per barrel.

In company news, American Airlines Group ( AAL ) shares tumbled nearly 14%, the steepest decline on the S&P 500. The company said late Tuesday it expects per-share adjusted earnings in a range of $1 to $1.15 for the ongoing three-month period, down from its prior guidance of $1.15 to $1.45.

UnitedHealth Group ( UNH ) said it sees a "disturbance" coming in the company's Medicaid business, Bloomberg News reported. The company's shares fell 3.8%, the worst performer on the Dow.

ConocoPhillips ( COP ) agreed to acquire fellow energy company Marathon Oil ( MRO ) in an all-stock deal worth roughly $22.5 billion, including $5.4 billion of debt. Marathon Oil ( MRO ) shares jumped 8.4%, the best performer on the S&P 500, while ConocoPhillips ( COP ) declined 3.1%.

Gold decreased 0.8% to $2,337.40 per troy ounce, while silver was little changed at $32.13 per ounce.