U.S. stocks open lower on oil rout

U.S. stocks opened lower on Wednesday, as further decline in oil prices rattled nervous investors.

Oil prices continued to trade near multi-year lows on Wednesday, dragged down by a global supply glut. The West Texas Intermediate for February delivery slipped below 28 U.S. dollars a barrel in the early trading on the New York Mercantile Exchange.

Investors turned to safe haven assets, such as sovereign bonds and gold, as global markets are in full retreat.

In economic news, the consumer price index declined 0.1 percent in December on a seasonally adjusted basis, the U.S. Labor Department said Wednesday. Core inflation, which excludes volatile energy and food costs, rose 0.1 percent in December, its smallest increase since August.

Privately owned housing starts in December were at a seasonally adjusted annual rate of 1.149 million units, 2.5 percent below the revised November estimate, according to figures of the U.S. Commerce Department.

Shortly after the opening bell, the Dow Jones Industrial Average lost 280.84 points, or 1.75 percent, to 15,735.18. The S&P 500 shed 31.45 points, or 1.67 percent, to 1,849.88. The Nasdaq Composite Index was down 71.27 points, or 1.59 percent, to 4,405.69.

U.S. stocks closed mixed on Tuesday, as investors raised hopes of further stimulus measures from Beijing following data that China's economy recorded the slowest annual expansion in 25 years, and digested on strong bank earnings reports. Endi