Despite comments from St. Louis Federal Reserve bank president William Poole that the Fed is ready to cut rates again should the need arise, the market has moved into negative territory on the day. In a speech in New York City, Poole said, My guess is that the inherent resilience of the U.S. economy along with future policy actions, should they be desirable, will keep the economy on a track of moderate average growth and gradually declining inflation over the next few years.

He went on to note that he saw tentative signs that the financial markets are beginning to recover. However, he did effuse a note of caution, stating that If the upset were to deepen in a sustained way, it might have serious consequences for employment stability.

With less than an hour to go in the third quarter, the Dow Jones Industrial Average (DJIA - 13,889.7) is down more than 23 points, while the S&P 500 Index (SPX - 1,525.91) is off more than 5 points. The tech-laden Nasdaq Composite (COMP - 2,699.3) had dropped 10 points.

Meanwhile, volume on the New York Stock Exchange was light, topping 721 million, with declining stocks outpacing advancers 4-to-3. On the Nasdaq, 1.2 billion shares had changed hands, with decliners holding a 9-to-8 advantage over advancing stocks.