04:53 PM EDT, 05/30/2024 (MT Newswires) -- US benchmark equity indexes dropped Thursday as fresh data showed that first-quarter economic growth was slower than initially projected.

The Nasdaq Composite decreased 1.1% to 16,737.1, while the Dow Jones Industrial Average fell 0.9% to 38,111.5. The S&P 500 lost 0.6% to 5,235.5. Technology and communication services posted declines among sectors, while real estate led the gainers.

In economic news, US real gross domestic product rose at a 1.3% annualized rate in the March quarter, down from a 1.6% pace previously projected and in line with the consensus in a survey complied by Bloomberg. The second estimate by the Bureau of Economic Analysis also showed that inflationary pressures eased during the quarter.

Although the latest GDP report indicates a slightly softer growth rate than previously reported, details show that the domestic economy is "still strong," TD Economics said in a note.

Separately, Stifel said the latest reading marks the weakest quarterly pace since the second quarter of 2022.

Pending home sales in the US declined more than projected last month amid rising rates and record home prices, the National Association of Realtors said.

Weekly applications for unemployment insurance in the US rose more than Wall Street's expectations, while the four-week moving average reached its highest level since Sept. 16, according to government data.

The US 10-year yield fell 7.6 basis points to 4.55% Thursday, while the two-year rate dropped six basis points to 4.93%.

The Federal Reserve's current monetary policy stance is "well positioned" to continue the progress policymakers have made toward achieving their goals, New York Fed President John Williams said. "The behavior of the economy over the past year provides ample evidence that monetary policy is restrictive in a way that helps us achieve our goals."

West Texas Intermediate crude oil dropped 1.7% to $77.91 per barrel. Commercial crude stockpiles in the US fell by 4.2 million barrels to 454.7 million barrels through the week ended May 24, the Energy Information Administration said. The consensus estimate on Bloomberg was for a draw of 1.8 million barrels.

In company news, Salesforce ( CRM ) shares plunged nearly 20%, the steepest decline on the S&P 500 and the Dow. The customer relationship management software provider late Wednesday logged fiscal first-quarter revenue that fell short of the Street's estimates. The company offered a downbeat outlook for the ongoing three-month period.

HP (HPQ) was the top gainer on the S&P 500, up 17%. The company late Wednesday posted fiscal second-quarter results that exceeded the Street's expectations.

Best Buy ( BBY ) followed HP on the S&P 500 Thursday, up 13%, as the retailer maintained its full-year financial outlook after reporting better-than-expected earnings for its fiscal first quarter.

Gold was little changed at $2,363.80 per troy ounce, while silver slumped 3.3% to $31.31 per ounce.