Stocks turn positive, expectations of rate-cut increase

Stocks in the United States recovered most of their losses this afternoon as expectations that the Fed would further ease monetary policy eased concerns about the country's economy.

The S&P 500 went into positive territory after registering more than 1% loss the day before. The Dow Jones Industrial Average is about its opening levels, having previously been above 300 points in the red, and the Nasdaq Composite is up about 0.2%.

Shares fell earlier in the day after the Institute for Supply Management reported that the US services sector had fallen to its lowest levels since August 2016. ISM Manufacturing PMI reached 52.6 in September, with an expected 55.3.

However, the Fed's chances of cutting interest rates this month are rising after poor economic data. Expectations for action by the central bank this month rose to 93.5% from 77% yesterday.

Wall Street has entered today amid a tumultuous start to the quarter. DJIA lost more than 800 points in the first two sessions after ISM reported that the US manufacturing sector hit its lowest level in the last 10 years, which has raised concerns about the economic recession.

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