US equity indexes fell as an advance estimate for Q1 economic growth showed contraction, while the Federal Reserve's preferred inflation measure remained unchanged for March.

The Nasdaq Composite dropped 1.5% to 17,194.2, with the S&P 500 down 1.1% to 5,499.4 and the Dow Jones Industrial Average 0.7% lower at 40,234.9 in midday trading Wednesday.

All sectors declined intraday, with energy, consumer discretionary, and communication services among the steepest decliners.

In economic news, US economic growth, measured by gross domestic product, fell by 0.3% in the advance estimate for Q1, following a 2.4% gain in Q4. A significantly wider net export gap and a decline in government spending were the key factors driving the overall drop, partially offset by a sharp increase in private inventory growth, the US Bureau of Economic Analysis said Wednesday.

Meanwhile, the personal consumption expenditures, or PCE, price index remained unchanged in March, matching expectations, but decelerated year-over-year to 2.3% from 2.7% in the previous month. The price index rose by 0.4% month-over-month in February.

The core PCE price index, the Fed's preferred inflation gauge, also held steady, versus the 0.1% gain expected and following a 0.5% gain in February. The year-over-year rate slowed to 2.6% from 3% in the previous month.

US Treasury yields traded mixed, with the 10-year up one basis point to 4.18% and the two-year rate down 3.7 basis points to 3.63%.

West Texas Intermediate crude oil futures dropped 3.3% to $58.40 a barrel.

In company news, Super Micro Computer (SMCI) shares sank 16% intraday, the worst performer on the S&P 500. The drop follows an overnight lowering of fiscal Q3 adjusted earnings per share and net sales guidance.