U.S. stocks sharply lower on oil rout

U.S. stocks traded sharply lower on Wednesday, as further decline in oil price rattled nervous investors.

By noon, the Dow Jones Industrial Average plunged 458.29 points, or 2.86 percent, to 15,557.73. The S&P 500 sank 56.09 points, or 2.98 percent, to 1,825.24. The Nasdaq Composite Index plummeted 133.25 points, or 2.98 percent, to 4,343.70.

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 27 U.S. dollars a barrel in midday 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 for all urban consumers declined 0.1 percent in December on a seasonally adjusted basis, the U.S. Labor Department said Wednesday. The index for all items less food and energy rose 0.1 percent in December, its smallest increase since August.

"The divergence between upward price pressure for services, led by housing and medical care, and downward price pressure on commodities continued in December," said Jay Morelock, an economist at FTN Financial.

Private-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 the U.S. Commerce Department Wednesday.

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, while digesting strong bank earnings reports. Enditem