Investing.com -- Stocks shook off recession concerns on Tuesday to rally, helping the Dow break a six-day losing streak.
Investors had sent indexes lower in the past few days on fears that the Federal Reserve hasn't finished with its interest rate hikes to cool inflation. While the Fed paused rate hikes this month, it left the door open for more increases this year. Futures traders see a greater than 75% probability that one will come in July at the Fed's next meeting.
A crucial report on inflation expected on Friday could be a main input into the Fed's decision. Analysts expect the PCE to rise from the same time last year, but show a continued cooling trend from prior months.
The Fed will also have the jobs report for June as it heads into its decision later in July. That report comes out at the end of next week.
Also tomorrow, the Fed will release the latest stress tests of the biggest U.S. banks, and the results will help determine how much banks will be able to return to shareholders in the form of buybacks and dividends.
Here are three things that could affect markets tomorrow:
1. Powell speaks
Fed Chair Jerome Powell is slated to participate at the European Central Bank's Forum in Portugal on Wednesday, including a panel at 9:30 ET (13:30 GMT).
2. General Mills earnings
Analysts expect packaged foods company General Mills Inc (NYSE:GIS) to report earnings of $1.07 a share on revenue of $5.17B.
3. Micron earnings
Micron Technology Inc (NASDAQ:MU) is expected to report a loss per share of $1.59 on revenue of $3.67 billion.