US STOCKS-Wall St set for biggest monthly drop in more than 3 yrs
* Inflation to likely rebound - Fed's Fischer
* Twitter rises after broker upgrade
* Phillips 66 up after Buffett discloses stake
* Indexes down: Dow 0.81 pct, S&P 0.81 pct, Nasdaq 0.70 pct (Adds details, changes comment, updates prices)
By Tanya Agrawal
Aug 31 (Reuters) - U.S. stocks were poised for their worst monthly drop in more than three years on worries about the health of China's economy and the timing of a U.S. interest rate hike.
All three major indexes slipped more than 1 percent on Monday after weekend comments from Federal Reserve Vice Chairman Stanley Fischer appeared to keep the door open for a rate hike in September.
The No. 2 Fed official said U.S. inflation would likely rebound as pressure from the dollar fades, allowing the Fed to raise interest rates gradually.
Fischer's remarks at the global central banking conference in Jackson Hole, Wyoming suggest the Fed could look beyond a week of stock market turmoil brought on by persistent fears that China's economy is faltering. Continuación...