Stocks fell marginally in early trade on Thursday as investors reacted to news that the US economy shrank for the second straight quarter, sharply raising concerns that the US economy is already in or is heading towards a recession.

The S&P 500 was down 20.48 points or 0.51% to 4,003.13 as of 10.10 am Eastern time. The Dow Jones Industrial Average fell 141 points or 0.44% to 32,056.59. The technology-heavy Nasdaq Composite was 108.91 points or 0.91% down to 11,923.52.

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The US economy contracted from April through June, shrinking at a 0.9% annual rate. On Thursday, the Commerce Department reported a decline in the gross domestic product (GDP), the broadcast gauge of the economy, followed by a 1.6% annual drop from January through March. The consecutive quarter of falling GDP constitutes an informal, though not definitive, an indicator of a recession.

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The GDP report for the last quarter showed weakness across the economy. Consumer spending slowed as Americans bought only necessary goods. Business investments also declined. Inventories fell as business slowed their restocking of shelves, shedding 2 percentage points from GDP.

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The Federal Reserve is trying to control inflation without tipping the US economy into a recession. On Wednesday, the central bank raised its key short-term interest rate by 0.75 percentage points.

Social media giant Meta Platforms’ shares fell 8% after it said its giant said its revenue fell last quarter for the first time ever, dragged down by a decline in ad spending.

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Spirit Airlines shares gained 3%. JetBlue said it agreed to acquire the budget airline for $3.8 billion to create the nation’s fifth largest airline. The acquisition is subject to regulatory approvals. The agreement comes a day after shareholders rejected Spirit’s proposal to merge with Frontier Airlines.