Updated from 3:37 p.m. EST

Announcements of significant job cuts at major financial firms and weakening earnings outlooks from several big retailers brought unease to Wall Street Monday, and the major indices finished with losses as a pile of sell orders overtook the trading floors during the final minutes of trading.

The

Dow Jones Industrial Average

lost 223.73 points, or 2.6%, to 8273.58, and the

S&P 500

sank 22.54 points, or 2.6%, to 850.75. The

Nasdaq

shed 34.80 points, or 2.3%, to 1482.05.

The major averages have been trading in a range for the past couple of weeks, and as they hit the lower end of that range, they could be due for a two- to three-day bounce, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. He also noted that this is an options-expiration week, which has lately been bullish for stocks.

Although the market is showing fear, said Detrick, "We have not truly, in our opinion, seen the flush-out. ... It's scary when the market keeps going lower and people keep saying there's good buying opportunities." He said that a weak Christmas for the retailers is priced in to the market and in the coming months, investors will be looking for signs of improvement in the overall economy.

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Detrick said that after substantial reductions in the target interest rate over the past year, investors will be checking to see that the

Federal Reserve's

intervention has actually helped the economy. "That's what we need for the market to really form a bottom," he said.

Over the weekend, members of the Group of 20 finance ministers convened in Washington to try to prevent further economic decline. The meeting resulted in a decision not to raise barriers to trade for 2009, to delegate additional money to the International Monetary Fund and to set up regulatory bodies to detect risky investment.

"Anything they agreed to is subject to the caveat of a new administration and a new Congress," said Doug Roberts, chief investment strategist at ChannelCapitalResearch.com. He said the market is more interested in what the new Obama administration will do in the face of the weakening economy.

Ahead of Monday's session emerged additional signs that companies were prepping for hard times.

Citigroup

(C) - Get Report

announced Monday it would eliminate 50,000 jobs, or 20% of its employees. And various reports indicated

JPMorgan Chase

(JPM) - Get Report

would be laying off thousands of workers in 2009.

Citi shares dropped 6.6% to $8.89, and JPMorgan slipped 4.9% to $32.77.

"Typically, unemployment continues to rise even when the economy hits bottom," said Roberts. He said employers tend to overshoot when making job cuts, which can eventually make for a strong rebound once a downturn plays itself out. However, "The bounce is by no means imminent," he said. "Right now, the pain shows no signs of abating."

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Elsewhere in the financials, top managers at

Goldman Sachs

(GS) - Get Report

were declining to take bonuses for 2008, accepting only their salaries.

Swiss bank UBS

(UBS) - Get Report

said that in 2009 it will cease bonuses for its chairman. Other executives will suffer penalties if the company performs poorly.

Shares of Goldman Sachs fell 6.4% to $62.49, while UBS added 1.7% to $11.70.

Meanwhile,

Genworth Financial

(GNW) - Get Report

applied with the Office of Thrift Supervision to become a savings and loan holding company and moved to buy a bank, moves that make it able to secure funding under the government's Troubled Asset Relief Program.

Hartford Financial Services

(HIG) - Get Report

announced on Saturday a similar move, saying it would buy Federal Trust Corp. and then seek government funds.

Genworth gave back 8.8% to $1.34. Hartford plummeted 27% to $9.26.

Uncertainty was even hitting holiday package deliveries. Shipper

UPS

(UPS) - Get Report

elected not to forecast the number of packages it would deliver on its peak shipping season and declined to forecast the number of seasonal workers it would hire. Shares ticked up 0.3% to $53.28.

In the automotive sector,

General Motors

(GM) - Get Report

was getting ready to sell its 3% stake in

Suzuki Motor

for $230 million. Shares gained 5.7% to $3.18.

U.S. carmakers are facing a tough road ahead, as GM,

Ford

(F) - Get Report

and

Chrysler

are getting hit by flagging sales and tough credit markets. The

Big Three

have lately been hoping to tap $25 billion of government money. Reflecting the dim outlook, Goldman Sachs on Monday reduced its price target on Ford shares to $2. The stock ended down 4.4% at $1.72.

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In other

analyst actions

, PC maker

Dell

(DELL) - Get Report

caught a Merrill Lynch downgrade to neutral from buy, and JPMorgan cut mining firm

Freeport-McMoRan

(FCX) - Get Report

to neutral from overweight. Dell dropped 3.4% to $10.52, and Freeport-McMoRan slumped 4.9% to $23.14.

Looking at corporate earnings, hardware store operator

Lowe's

(LOW) - Get Report

saw profit decline year over year and cut its full-year earnings guidance, and shares climbed 4.2% to $18.99. Fellow retailer

Target

(TGT) - Get Report

also announced reduced quarterly profit and suspended its share-buyback program. The stock slid 4.1% to $31.68.

As to economic data, New York's November Empire State index registered at negative 25.43, down from negative 24.62 a month ago. Economists were expecting a look of negative 26.10.

A poll by the National Association of Business Economists showed that respondents believe the U.S. has entered a recession and that the unemployment rate will hit 7.5%.

The Federal Reserve said that industrial production increased 1.3% in October, up from a 3.7% decline in October and a larger increase than economists' expectation of 0.2%.

In other news, the

Securities and Exchange Commission

charged investor and Dallas Mavericks owner

Mark Cuban

with insider trading Monday. The SEC said that Cuban is accused of trading shares of Mamma.com on confidential information.

Switching to commodities, crude oil lost $2.09 to settle at $54.95 a barrel. Gold dropped 50 cents to close at $742.50 an ounce.

Longer-dated U.S. Treasury securities were rising in price. The 10-year was adding 14/32 to yield 3.68%, and the 30-year was gaining 13/32, yielding 4.2%. The dollar was rising vs. the euro but weakening against the yen and pound.

The cost of borrowing as measured by three-month dollar Libor was rising slightly at 2.24%. The overnight Libor rate was down to 0.4% from 0.41%.

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Abroad, European exchanges such as the FTSE in London and the DAX in Frankfurt were losing ground. In Asia, Japan's Nikkei ended the day higher, while Hong Kong's Hang Seng closed on the downside. The Japanese government also proclaimed that its economy had fallen into recession and may continue to shrink in the near term.