By Liz Moyer

Investing.com -- Stocks tumbled after Federal Reserve Chair Jerome Powell’s remarks to reporters Wednesday afternoon.

The Fed raised interest rates by a quarter of a percentage point, as expected. Powell said financial conditions have tightened and added that banking sector turmoil could slow things down even more.

Fed economic projections foresee just one more rate hike this year. Rates will rise to 5.1% this year, a forecast that is unchanged since December, but Powell acknowledged the fight against inflation isn’t over. The inflation forecast does have some positive news: it is seen easing to 3.3% by year-end, down from the 5.4% forecast previously.

The uncertainty about how much the banking system’s issues will slow the economy wasn’t well-received by investors, who dumped stocks and sent the Dow down more than 500 points.

More economic data in the days ahead will give investors an idea of where things stand on inflation, including the personal consumption expenditure index next week.

Here are three things that could affect markets tomorrow:

1. Jobless claims

Initial jobless claims are due out at 8:30 ET (12:30 GMT). Analysts expect a reading of 197,000, which would be slightly up from the previous week and show more evidence of a tight labor market.

2. Darden earnings

Olive Garden owner Darden Restaurants Inc (NYSE:DRI) is expected to report earnings per share of $2.23 on revenue of $2.7 billion.

3. General Mills earnings

Cheerio’s maker General Mills Inc (NYSE:GIS) is expected to report earnings per share of 91 cents on revenue of $4.94B.

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