U.S. Stocks Fall as Small Caps Tumble, Commodities Drop

U.S. stocks dropped from a record, with small-cap companies tumbling the most in two months, as analysts brought forward estimates for the Federal Reserve to raise interest rates. Commodities slumped as natural gas and metals retreated.

The Standard & Poor’s 500 Index slipped 0.4 percent at 4 p.m. in New York. The Russell 2000 Index tumbled 1.8 percent, the most since April 25. The Stoxx Europe 600 Index slid 0.9 percent after rising 1.8 percent last week. The yield on Treasury three-year notes climbed one basis point while 10-year rates dropped three points. Emerging-market stocks advanced as Indonesian stocks gained the most since April. The S&P GSCI index of 24 commodities slumped 0.9 percent, as silver lost 0.6 percent and U.S. natural gas erased 4.1 percent.