01:19 PM EDT, 04/25/2024 (MT Newswires) -- US equity indexes fell after midday Thursday as a sell-off in Meta Platforms ( META ) weighed on communication services sector, while government bond yields advanced after economic growth slowed in Q1.

The S&P 500 fell 1% to 5,022.2, with the Dow Jones Industrial Average 1.3% lower at 37,966.3 and the Nasdaq Composite down 1.3% to 15,514.8. Consumer discretionary and financials were also among the steepest decliners.

In economic news, gross domestic product rose 1.6% in Q1 after a 3.4% increase in Q4, slower than a 2.5% gain expected in a survey compiled by Bloomberg.

Initial jobless claims fell sequentially to 207,000 during the week ended April 20 from an unrevised 212,000, compared with expectations for an increase to 215,000 in a Bloomberg survey.

The US 10-year Treasury yield rose 5.4 basis points to 4.71%, and the two-year rate advanced 6.1 basis points to almost 5%.

According to the CME Group's FedWatch Tracker, the probability of the Federal Reserve holding its rates in July surged to 68% from 56% a day ago. The likelihood of the Fed extending the pause to September jumped to 41% versus 30% a day earlier.

Pending home sales rose 3.4% in March, above the 0.4% increase expected in a survey compiled by Bloomberg, according to the National Association of Realtors. The growth in February was 1.6%.

In company news, Meta Platforms ( META ) raised its 2024 capital expenditure guidance to between $35 billion and $40 billion from the prior $30 billion to $37 billion range due to infrastructure investments required to support its artificial intelligence strategy, Chief Financial Officer Susan Li said. Shares sank 12%, the worst performer on the S&P 500 and the Nasdaq.

Textron ( TXT ) reported Q1 adjusted earnings and revenue that missed market expectations. It also expects to cut headcount by roughly 1,500, or 4% of its global workforce. The stock was the second-worst performer on the S&P 500, down 12% intraday.

IBM ( IBM ) shares slumped 10%, among the steepest decliners on the S&P 500, after the company agreed to buy HashiCorp ( HCP ) in a $6.4 billion deal. BofA Securities cut the technology giant's price target to $209 from $220 while keeping its buy rating.

West Texas Intermediate crude oil fell 0.5% to $82.39 a barrel.