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By Kate Gibson

Financial shares, led by the wounded giant Citigroup Inc., paced Wednesday's market free fall, with energy and consumer discretionary shares adding to the sharp retreat, after the latest confirmations of a deepening recession.

"When you look at the reports this week, trade balance, the decline in retail sales, the decline in import prices, you realize how deeply mired the U.S. economy is in a recession. It requires the help of the Federal Reserve, and we've gotten some; it requires the help of government, and it appears it needs more help, and more help is on the way. The problem is nobody knows if it'll work, [and] nobody knows what the formula is for ending it," said Hugh Johnson, chairman of Johnson Illington Advisors.

Off more than 15%, Citigroup (C) led a retreat that sank all 30 components of the Dow Jones Industrial Average (DJI), with the blue-chip index plummeting to early December's lows.

Also slammed by double-digit declines, Huntington Bancshares Inc. (HBAN), Developers Diversified Realty (DDR) and American Capital Ltd. (ACAS).

Already down, energy shares fell further after data had U.S. heating-oil inventories climbing more than expected. Shares of Consol Energy Inc. (CNX), National Oilwell Varco Inc. (NOV) and Peabody Energy Corp. (BTU) all fell 10% or more.

The consumer-discretionary category fell as well, with companies from Goodyear Tire & Rubber Co. (GT) to Nordstrom Inc. (JWN) hammered, each down about 10%.

The government's separate reports showing twice the expected decline in retail sales in December, along with a 4.2% drop in import prices, illustrated the economic horror of the holiday shopping season as well as reduced demand for goods as Americans cut back.

Health care and consumer staples were spared the worst of the damage, with pharmaceuticals including Baxter International Inc. (BAX) and Bristol-Myers Squibb Co. (BMY) managing to eke out gains amid the bloodshed.

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