U.S. stocks down as commodities struggle

Supply chain managers have been keeping a close eye on commodities. The commodities market performed well in June, despite severe weather that has affected crops such as U.S. corn. However, gold was down about 1.5 percent on July 10, as news circulated that a U.S. futures brokerage was missing client funds, according to Reuters. Diverse supply chains have been impacted by the fluctuating commodities market and slumping stocks, as Reuters stated metals, energy and equities were all down.

The Standard & Poor's 500 Index decreased 0.8 percent on July 10, closing at $1,341.47 and extending its longest slump since May, Bloomberg reported.

“The bigger concern is with the next few quarters,” said Bruce McCain, chief investment strategist at the private banking unit of KeyCorp in Cleveland, in a phone interview with Bloomberg. “Earnings disappointments suggest that we’re going to have not only weakness this quarter, but it’s likely to carry on.”

The 10-year Treasury yield and euro also weakened, with the Treasury yield falling one basis point to 1.50 percent and the euro decreasing as much as 0.6 percent.

Oil dropped 2.4 percent to $83.91 a barrel following a strike in Norway, and purchases were reduced in China, Bloomberg stated.

According to Reuters, gold was also down more than 1.3 percent on weak commodities and pessimism in the market.