Dow Dives 680 as Wall Street Learns It's Really a Recession

Gendreau said he had been hoping for a bounce in the major averages that follows a major selloff and additional support from the end of the presidential race. "Maybe we got it, but maybe that was it," he said of November's month-end rally.

Corporate headlines did little to counter selling pressure. Before trading began, beleaguered automaker General Motors (GM Quote) was ironing out a plan to cajole Congress into giving it federal money, according to a report by The Wall Street Journal. The report indicated that GM's board is willing to explore all restructuring options, including a Chapter 11 bankruptcy filing, if it can't secure government funds.

Over the weekend, another report by the Journal said that GM was exploring other plans to shore up its balance sheet, including offering its debt holders the opportunity to swap credit for equity. GM shares dropped 12% to $4.59.

As the carmakers faced dire circumstances, the United Auto Workers called for Congressional aid for the Big Three.

Ford (F Quote) said it was considering a possible sale of its Volvo brand. The move comes amid a decline in global auto demand and Ford's efforts to bolster its balance sheet, the company said. Shares slid 5.2% to $2.55.

Hoping to reach a bailout deal, the automakers are expected to present before Congress on Tuesday plans for revamped business models and improved long-term viability.

The Journal also reported that Delta Air Lines (DAL Quote) would scale back its orders for Boeing's (BA Quote) new 787 Dreamliner and instead add to its orders for the long-range 777-200LR.

Delta shed 9.7% to $7.96, and Boeing gave back 6.5% to $39.88.