Stock futures drop on bailout anxiety, banks

NEW YORK (Reuters) - Stock index futures fell on Tuesday as Federal Reserve Chairman Ben Bernanke said global financial markets remain under extraordinarily stress as Congress debates a proposed $700 billion financial system bailout.

In testimony to be delivered to a Senate committee and obtained by Reuters, Bernanke said, "Action by Congress is urgently required to stabilize the situation and avert what could otherwise be very serious consequences for our financial markets and our economy."

S&P 500 futures fell 1.70 points but were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures slipped 13 points and Nasdaq 100 futures rose 1 point.

(Reporting by Ellis Mnyandu; Editing by Kenneth Barry)