Wall Street retreats

Stocks tumbled anew Monday morning as any enthusiasm that the government may boost its stake in Citigroup was tempered by ongoing worries about the economy.

The Dow Jones industrial average (INDU) lost 62 points, or 0.9%, after ending the last session at the lowest point since Oct. 9, 2002, at the bottom of the last bear market.

The S&P 500 (SPX) index lost 8 points, or 1.1%, ending at the lowest point since Nov. 20, 2008, seen by some as the low of the current bear market.

The Nasdaq composite (COMP) lost 23 points or 1.7%.

Weakness in the technology sector caused the broader market to give up early gains. Intel (INTC, Fortune 500), Microsoft (MSFT, Fortune 500) and Dell (DELL, Fortune 500) were among the big technology losers.

Stocks have tumbled over the last two weeks on worries that the government won't be able to slow the recession, despite announcing a series of programs. On Friday, stocks slipped on worries that Citigroup and Bank of America might have to be taken over by the government altogether.

Some of those worries were tempered Monday after reports surfaced that the government is looking to boost its stake in Citigroup (C, Fortune 500), something that would fall short of full nationalization but would enable it to avoid bankruptcy. Should Citigroup be fully nationalized by the federal government or forced to declare bankruptcy, that would wipe out all shareholder value.

Separately, Treasury said in a statement that the government is ready to offer more money to banks if needed. Treasury begins its Capital Assistance Program Wednesday. The program, previously announced by Treasury Secretary Timothy Geithner, involves giving banks "stress tests" to determine how they are doing and whether they need more money.

Company news: Meanwhile, the Treasury is also considering its options as General Motors (GM, Fortune 500) and Chrysler continue to flounder, despite having received billions in federal aid. According to a Wall Street Journal report Monday, the administration believes the possibility of Chapter 11 bankruptcy filings by the two companies must be seriously considered.

Meanwhile, Ford Motor (F, Fortune 500) has reached a tentative deal with its union on changed to retiree health care benefits, considered to be a critical concession on the part of the UAW. Shares rallied 13%.

Yahoo (YHOO, Fortune 500) could announce a major management reorganization as early as Wednesday, although more likely next week, according to a published report Monday. Yahoo shares were little changed.

Bonds: Treasury prices fell, raising the yield on the benchmark 10-year note to 2.80% from 2.79% Friday. Treasury prices and yields move in opposite directions.

Other markets: In global trading, most Asian markets ended mixed, while European shares fell in afternoon trading.

In currency trading, the dollar gained versus the euro and the yen.

U.S. light crude oil for April delivery rose $1.27 to $41.30 a barrel on the New York Mercantile Exchange.

COMEX gold for April delivery fell $9.20 to $993 an ounce.