U.S. stocks slump on global rout, diving oil

U.S. stocks traded sharply lower amid downbeat data in the morning session Friday, as a heavy sell-off in Asian and European markets and a plunge in oil prices rattled nervous investors.

Around midday, the Dow Jones Industrial Average dived 431.75 points, or 2.64 percent, to 15,947.30. The S&P 500 tumbled 50.40 points, or 2.62 percent, to 1,871.44. The Nasdaq Composite Index shed 154.98 points, or 3.36 percent, to 4,460.02.

Chinese shares sank Friday, with the benchmark Shanghai Composite Index going below 2,900 points during afternoon trading. At close, the Shanghai index decreased 3.55 percent to 2,900.97 points.

European equities also plummeted, weighed by deep losses in Asian stocks and sharp declines in commodities prices.

Adding to the pessimism in the market, oil prices plunged further Friday, with both the U.S. oil and the Brent crude dropping about 5 percent to trade below 30 U.S. dollars a barrel around midday Friday.

The U.S. economic data also came out negative. The Commerce Department announced Friday that advance estimates of retail and food services sales for December decreased 0.1 percent from the previous month to 448.1 billion dollars, missing market expectations.

The Producer Price Index for final demand decreased 0.2 percent in December after seasonal adjustment, the Labor Department said Friday.

The U.S. industrial production declined 0.4 percent in December, primarily as a result of cutbacks for utilities and mining, according to the Federal Reserve Friday.

On Thursday, U.S. stocks rebounded strongly as Wall Street cheered over positive earnings and a rebound in oil prices. Endit