US benchmark equity indexes closed mixed on Wednesday amid worries that the world's biggest economy could be headed for a deeper downturn after data showed a gross domestic product contraction in the first quarter.

The Nasdaq Composite dipped 0.1% to 17,446.3. The Dow Jones Industrial Average was up 0.4% at 40,669.4, while the S&P 500 rose 0.2% to 5,569.1, with both notching their seventh consecutive day of gains.

Most sectors were in the green with modest gains on Wednesday, while energy saw the steepest decline.

The Nasdaq advanced 0.9% in April after two straight monthly losses. The Dow and the S&P 500 posted their third consecutive monthly declines.

In economic news, US real GDP decreased at an annual rate of 0.3% in the March quarter, representing the first drop since the first quarter of 2022, according to an advance estimate by the Bureau of Economic Analysis. The consensus was for a 0.2% decline in a survey compiled by Bloomberg.

"The US economy's modest contraction in (the first quarter) was mostly due to temporary issues, but the trade war will weigh this year," BMO Capital Markets said. "Weaker exports and intense uncertainty will hold the economy back in the next couple of quarters."

A rebound in consumer spending in March may continue into April amid a pull-through of big-ticket purchases ahead of tariffs, but consumption is likely to falter as these effects phase out, TD Economics said.

"Fixed investment is also at risk of drying up amidst the persistent tariff policy uncertainty, suggesting a more meaningful slowdown in domestic activity is likely on deck over the coming quarters," TD Senior Economist Thomas Feltmate said.

Separately, Wells Fargo Investment Institute said it continues to expect the world's largest economy to "skirt a recession" this year.

A government report showed that US personal consumption expenditures rose 0.7% in March, surpassing the Bloomberg-polled consensus for a 0.6% increase. The Federal Reserve's preferred inflation metric -- core PCE price index -- cooled down to 2.6% annually from February's 3% growth, meeting the Bloomberg consensus.

Pending home sales in the US rose at the fastest monthly pace since December 2023 in March as mortgage rates fell, according to the National Association of Realtors.

"Home buyers are acutely sensitive to even minor fluctuations in mortgage rates," NAR Chief Economist Lawrence Yun said. "While contract signings are not a guarantee of eventual closings, the solid rise in pending home sales implies a sizable build-up of potential home buyers, fueled by ongoing job growth."

Employment growth in the US private sector missed Wall Street's estimates for April, while wage growth showed mixed results for job stayers and those who switch to new roles, Automatic Data Processing (ADP) data showed.

US Treasury yields were mostly lower, with the two-year rate losing 5.3 basis points to 3.60% and the 10-year rate falling one basis point to 4.17%.

In company news, Super Micro Computer (SMCI) shares plunged nearly 12%, the worst performer on the S&P 500. The artificial intelligence server maker lowered its fiscal third-quarter financial outlook late Tuesday.

Newell Brands (NWL) on Wednesday issued a downbeat second-quarter earnings outlook and downgraded its full-year core sales guidance, citing a challenging macroeconomic backdrop. The company's shares were down 7.5%.

Western Digital (WDC) was among the best performers on the S&P 500, up 8%, after the data storage products maker logged double-digit growth in fiscal third-quarter revenue and outlined an above-consensus guidance for the final three months of the year.

West Texas Intermediate crude oil was down 3.7% at $58.16 a barrel.

"Lingering tariff risks and expectations of (the Organization of the Petroleum Exporting Countries and its allies) loosening output curbs continue to pressure oil prices," ING commodities strategist head Warren Patterson said in a report published Wednesday.

US commercial crude stockpiles dropped more than projected last week as motor gasoline inventories saw a sizable draw, government data showed.

Gold was down 0.8% at $3,306.70 per troy ounce, while silver declined 2.5% to $32.75 per ounce.