Daley calls the court's action Thursday "very disheartening in this day and age." He says more drug dealers and gang members are buying more guns.
The court ruled that there was no legal basis for holding the manufacturers responsible.
Chicago sued in 1998 for $433 million. That's the amount they claim the city spent on law enforcement and emergency medical care over four years because of guns.
The other suit was filed by families of victims of handgun violence.
Daley said he'd just learned of the Supreme Court ruling and he says he'll work with the city's legal team to determine their next step.