Dow sheds 100 points, stocks post 3-session drop after Fed’s Powell says expect more rate hikes

U.S. stocks closed lower for a third session in a row, retreating after recently touching their highest levels in more than a year. The Dow Jones Industrial Average
DJIA,
-0.30%
shed about 102 points, or 0.3%, ending near 33,951, the S&P 500 index
SPX,
-0.52%
closed 0.5% lower and the Nasdaq Composite Index
COMP,
-1.21%
shed 1.2%, according to preliminary FactSet data. Stocks have been drifting lower in the past three sessions, pausing a recent rally that lifted the S&P 500 out of a bear market. The second-guessing by bulls comes as the Federal Reserve appears near, but not finished, raising rates in this cycle. Fed Chairman Jerome Powell told Congress on Wednesday to expect more rate hikes this year, with inflation still running well above the central bank’s 2% annual target. Fed officials kept their policy rate in a 5%-5.25% range in June, but signaled potentially two more rate hikes this year. The Fed’s “dot plot” indicates the benchmark rate could peak in a 5.5%-5.75% range.