By Liz Moyer

-- Stocks sank on Wednesday but recovered from their lows on fresh concerns about a spreading contagion in the banking sector.

(NYSE:) was under pressure after a top investor said it couldn't offer more financial assistance. Late Wednesday, Swiss regulators said they would step in to provide liquidity if needed, seeking to stabilize the situation.

Traders have shifted their bets on the outcome of next week's Federal Reserve policy meeting. About half of traders are a quarter of a percentage point increase, while the other half are betting on a pause. 

In just over a week, the sentiment has shifted. Last week, Fed Chair Jerome Powell signaled continued high inflation meant the Fed could aggressively move on rates, but now the thinking is that the economy has slowed and rates could start coming down later this year. Investors are waiting to hear what Powell says next week, and what the dot-plot projections by Fed policymakers forecast.

Here are three things that could affect markets tomorrow:

1. Housing starts

The housing market has been pummeled by rising mortgage rates in recent months, but that could be turning around. Analysts expect data for February at 8:30 ET (12:30 GMT) and for it to say the economy added 1.31 million homes on an annualized basis, up from 1.309 million the prior month.

2. Jobless claims

Analysts expect to be 205,000, down slightly from the prior week, despite constant headlines about layoffs in the technology sector. 

3. FedEx earnings

In corporate earnings, logistics giant FedEx Corporation (NYSE:) is expected to report earnings per share of $2.73 on revenue of $22.7 billion, while discounter Dollar General Corporation (NYSE:) is expected to report earnings per share of $2.99 on revenue of $10.2B.