By Liz Moyer
Investing.com -- Stocks sank on Tuesday after Federal Reserve Chair Jerome Powell said the central bank could quicken the pace of interest rate hikes if the data supports such a move.
That is leading futures traders to put more bets on a half-percentage point hike later this month.
Powell, who was making his semiannual testimony to Congress, said interest rates may head higher than previously anticipated. The red-hot jobs report in January quashed hopes that the Fed was nearing the end of its rate hiking and possibly getting to the point where it would pause.
But Powell, who also testifies Wednesday, said restoring price stability means the Fed will have to keep rates higher for some time.
This Friday comes a critical piece of data in the Fed's next rate decision: the February jobs report, which is expected to show the economy added 200,000 jobs last month.
More data on inflation comes out before the Fed meeting, which starts March 20 and ends the next day with a decision and press conference.
Here are three things that could affect markets tomorrow:
1. Beige Book
The Fed also releases its Beige Book on Wednesday at 14:00 ET (19:00 GMT). It is a periodic snapshot of financial conditions in each of its regional districts, and could provide clues on the strength of the labor market and manufacturing activity.
2. Campbell Soup
The food giant Campbell Soup Company (NYSE:CPB) is expected to report earnings of 74 cents a share on revenue of $2.4 billion.
3. Brown Forman
The spirits and wine producer Brown Forman (NYSE:BFb) is expected to report earnings of 47 cents a share on revenue of $1.02B.