US stocks drop as recession worries take the air out of a short-lived rebound

• US stocks slid on Wednesday in the wake of a post-holiday rally.
• Fed Chairman Jerome Powell will testify before the Senate Banking Committee on Wednesday.

US stocks dropped Wednesday as investors hit the brakes on a bear-market rally as they prepared to hear what Federal Reserve Chairman Jerome Powell will tell lawmakers about monetary policy and about the potential for a recession in the world's largest economy.

The S&P 500 looked set to fall for the first time in three sessions. Powell was scheduled to testify Wednesday and Thursday before two congressional committees, with his appearance is focus after the central bank this month raised rates by the most since 1994.

The hike of 75 basis points added to its campaign of fast rate increases to cool down inflation that's sitting at four-decade high.

Powell will testify Wednesday before the Senate Banking Committee.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:

• S&P 500: 3,729.73, down 0.93%
• Dow Jones Industrial Average: 30,231.32, down 0.98% (298.93 points)
• Nasdaq Composite: 10,980.08, down 0.8%

Around the markets, the Federal Reserve raising interest rates quickly to fight inflation won't "make things good again," says billionaire investor Ray Dalio.

Russia exported gold to Switzerland for the first time since launching its war against Ukraine as some buyers soften on self-sanctioning.

Oil prices tumbled. West Texas Intermediate crude dropped 6.2% to $102.72 per barrel. Brent crude, the international benchmark, lost 5.7% to $108.11.

Gold rose 0.5% to $1,847 per ounce. The 10-year yield fell 10 basis points to 3.18%.

Bitcoin declined 2.6% at $20,287.11.