Stocks recovered most of their losses, as traders were hesitant to make large bets ahead of Jerome Powell's speech on Wednesday.

Gains in energy and financial companies offset a drop in big tech. Amazon, which is selling investment-grade debt, saw its stock fall. Trading volume was lower than the previous month's average. A global yield curve gauge inverted for the first time in at least two decades, indicating a recession.

Powell is expected to confirm expectations that the Fed will slow its rate of hikes next month, while reminding Americans that the fight against inflation will run through 2023. Some policymakers stressed this week that they will raise borrowing costs further, with one key official predicting that rates will rise slightly higher than he predicted just a few months ago.