US stocks continued their losing streak on Monday on concerns recession may be more severe, deeper and longer than previously anticipated. Mounting job losses also dampened sentiment.

The Dow Jones Industrial Average retreated 223.73 points, (-2.63%), to close at 8,498.10. The S&P 500 fell 22.54 points (-2.58%) to 850.75. The Nasdaq Composite shrank 34.80 points (-2.29%) to 1,482.05.

A survey of 50 professionals by National Association for Business Economics survey suggested that most of the business economists are of the opinion that the U.S. economy is already in recession and is set to contract at a faster pace of 2.6% in the fourth quarter, extending the decline into early 2009.According to the survey, the unemployment rate was likely to peak at 7.5% by the third quarter of 2009. NABE President Chris Varvares said in statement "Business economists became decidedly more negative on the economic outlook for the next several quarters as a result of the intensification of credit market stresses and evidence of spillover to the real economy."

A release by Cabinet Office on Monday showed Japan, the world's second largest economy, entered into first recession in eight years after it shrank 0.4% in third quarter. Economists had expected the data to show a marginal rise in GDP. Earlier, in second quarter it contracted a revised 3.7%. Japan's economy last fell in recession in 2001.

Among Dow components, Alcoa (NYSE: AA) suffered the most. Shares of Aluminum producer fell $1.17 cents or 10.79% to $9.67.

Citibank (NYSE: C) fell 63 cents or 6.62% to $8.89. Early on Monday, Citigroup announced that it is planning to slash about 53,000 jobs in the near-term and cut expenses by 20%. Bank of America Corp. (NYSE: BAC) plunged $1.39 cents or 8.47% to $15.03. Goldman Sachs (NYSE: GS) sank $4.24 or 6.35% to $62.49. JP Morgan & Chase & Co (NYSE: JPM) subtracted $1.70 or 4.93% to finish at $32.77. According to a report by UK Telegraph, the company is planning thousands of job cuts globally.

Insurance stocks plunged. Hartford Financial Services Group Inc. (NYSE: HIG) sank $3.39 or 26.8% to $9.26.Metlife Inc. (MET) plummeted $5.91 or 21% to $22.23.Prudential Financial Inc. (NYSE: PRU) and Principal Financial Group Inc. (NYSE: PFG) fell 17.23% and 10.87% respectively.

Caterpillar Inc. (NYSE: CAT) decreased $1.26 or 3.41% to $35.70.

Among energy stocks, Chevron Corp. (NYSE: CVX) gave up $1.90 or 2.61% after crude oil drifted lower.

Among technology, International Business Machines (NASDAQ: IBM) subtracted $2.85 or 3.55% to $77.48.Hewlett-Packard Co. Hewlett-Packard Company (NYSE: HPQ) lost 3.68% while Intel Corp. (NYSE: INTC) slumped 2.4%. Microsoft Corp. (MSFT) dropped 74 cents or 3.69% to close at $19.32.

Shares of Target Corp.