01:24 PM EDT, 05/30/2024 (MT Newswires) -- US equity indexes fell Thursday as investors weighed the second estimate for Q1 economic growth and the countdown began for the release of the Federal Reserve's preferred inflation gauge on Friday.

The Nasdaq Composite fell 0.5% to 16,848.4, the S&P 500 was down 0.2% to 5,256.5, and the Dow Jones Industrial Average slid 0.7% to 38,193.6 after midday on Thursday. All sectors, except technology and communication services, were rising. Real estate led the gainers.

In economic news, US gross domestic product growth in Q1 was revised to 1.3% from a 1.6% increase in the advance estimate, in line with the 1.3% gain anticipated in a survey compiled by Bloomberg. GDP rose 3.4% in Q4.

While the second estimate showed a slightly softer pace of economic expansion than previously reported, the overarching narrative has not changed, TD Economics said in a note Thursday. Including the downward revision, final sales to domestic purchasers, a gauge of domestic activity, still advanced by a "healthy" 2.8% versus 3.1% reported previously.

Meanwhile, US initial jobless claims rose to 219,000 in the week ended May 25 from an upwardly revised 216,000 in the previous week, compared with expectations for 217,000 in a survey compiled by Bloomberg. The four-week moving average increased to 222,500 from 220,000.

Pending home sales fell 7.7% in April, versus the 1% slide expected in a survey compiled by Bloomberg and following a 3.6% increase in March, the National Association of Realtors said. The monthly sales index was down 7.4% from April 2023.

The US 10-year Treasury yield slumped 7.6 basis points to 4.55%, retreating from its highest level in about a month, ahead of the Federal Reserve's preferred inflation data due on Friday. The two-year yield dropped 5.8 basis points to 4.93%.

April's inflation print based on the personal consumption expenditures index will arrive on Friday, and the question is the degree to which the Fed's preferred inflation gauge will follow the Consumer Price Index released on May 15, according to a note from Scotiabank. Consensus splits between 0.2% and 0.3% for core PCE in April. A 0.2% print could reinforce pricing for interest rate cuts this year, while 0.3% could push against such pricing, Derek Holt, head of capital markets economics at Scotiabank, said in a note Monday.

There is uncertainty in markets around how long the Federal Reserve could keep interest rates elevated, D.A. Davidson said in a note, referring to the need for a consistent flow of macroeconomic data to support the argument for rate cuts.

In company news, Best Buy's ( BBY ) fiscal Q1 earnings grew more than the market forecast, and its guidance for fiscal 2025 was in line with analysts' expectations. Shares climbed more than 12% intraday, the second-biggest gainer on the S&P 500.

Salesforce ( CRM ) shares sank nearly 21%, the steepest decliner on the S&P 500 and the Dow Industrial, after the tech giant's fiscal Q2 guidance trailed the average analyst estimate compiled by Capital IQ.

West Texas Intermediate crude oil dropped 1.8% to $77.78 a barrel.

Gold rose 0.2% to $2,344.81 an ounce, while silver slumped 2.7% to $31.51.