U.S. stocks fall despite European equities rally

U.S. stocks traded in a narrow range in the morning session on Wednesday, as investors eyed a rally in European stocks and oil prices.

At midday, the Dow Jones Industrial Average shed 99.25 points, or 0.61 percent, to 16,231.22. The S&P 500 dropped 7.26 points, or 0.37 percent, to 1,935.48. The Nasdaq Composite Index was down 8.96 points, or 0.19 percent, to 4,747.76.

European shares bounced back Wednesday from the previous day's plunge, as European Central Bank (ECB) President Mario Draghi said the ECB will adjust the size of monetary stimulus, composition and duration if more monetary policy impulse should become necessary.

On Tuesday, European shares ended drastically lower, with Germany's benchmark DAX index at the Frankfurt Stock Exchange diving 3.8 percent, as a result of Volkswagen's emissions scandal.

The German carmaker's shares plummeted nearly 20 percent on Tuesday, following a deep decline of 18.6 percent on Monday.

Investors also eyed oil prices, which held higher on Wednesday after U.S. crude inventories fell sharply.

Meanwhile, some analysts believed that uncertainty about the timing of interest rate hikes by the U.S. Federal Reserve had led to increased volatility.

The U.S. central bank held its benchmark rate near zero after concluding its two-day monetary policy meeting Thursday. Most Fed officials, however, still expect a rate increase this year, the first in nine years. Enditem