The Dow Jones industrial average’s 552-point rally yesterday may be short-lived as retailers reported a major cutback in consumer spending and more companies announced huge layoffs, the Associated Press reported.

As of 11:15 a.m. this morning, the Dow was down more than 300 points to 8,512.36. The Nasdaq 100 index was down 70.47 points to 1,526.23 and the Standard & Poor’s 500 declined 37.14 points to 874.15.

Sun Microsystems Inc. announced that it will cut up to 6,000 jobs, or 18 percent of its global work force, as part of a major restructuring plan. Citigroup Inc. is cutting 10,000 more jobs in its investment banking operations and other departments, according to The Wall Street Journal, which cited people familiar with the plan.

Freddie Mac also said that it will tap into the $200 million in funding promised by the Treasury Department for the first time after the company announced a $25.3 billion loss for the third quarter. The company was affected by $14.3 billion in charges to reduce the value of tax assets, $9.1 billion in write downs on mortgage securities and $6 billion in credit losses from delinquencies on mortgages and foreclosures. It will receive an initial $13.8 billion in capital from the government.

Meanwhile, debate continues in Washington over the details of the $700 billion bailout plan. Federal Deposit Insurance Corp. Chairwoman Sheila Bair unveiled details of her $24.4 billion proposal today that would have the government take up to 50 percent of the losses if a homeowner defaulted on a modified loan, CNNMoney.com reported. The government would also pay $1,000 to servicers to adjust a loan so that monthly payments were as low as 31 percent of a borrower’s income.

Treasury Secretary Henry Paulson has praised Bair’s proposal, but said it was one of several under discussion. Meanwhile, congressional Democrats have publicly backed Bair as they press for more assistance to homeowners.

Congress also is expected to vote next week on a $25 billion emergency loan plan to bail out Ford Motor Co. and General Motors Corp.