US markets decline on back of large commodity slump

The US markets declined on the back of a large commodity slump led by crude and lower than expected Alcoa numbers. The S&P 500 suffered its worst single-session slide in almost a month and closed below its 50-day moving average for the first time in three weeks.

Dow Jones Industrial Average was down 0.95% or 117.53 points at 12263.58. Nasdaq Composite shed 0.96% or 26.72 points at 2744.79. Standard & Poor's 500 fell 0.78% or 10.3 points at 1314.16.

The euro traded near 15-month high against the dollar as reports suggested positive European industrial production for a 5th-straight month. The yen also gained sharply against the dollar.

Crude retreated from 32-month highs as Goldman Sachs warned again of a price reversal and key forecasters said expensive oil could erode demand. Reports of rising US stockpiles also offset supply concerns in West Asian concerns.