Dow Jones Futures: What To Do After Today's Stock Market Plunge; Fed Meeting, Key Inflation Report Next

Dow Jones futures were higher following Monday's stock market plunge. The major stock indexes sold off with heavy losses to hit new 2021 lows, as Treasury yields surged to their highest level since 2011.

Up next, more inflation data is due out with the Labor Department's producer price index Tuesday, while the Federal Reserve's highly-anticipated two-day meeting will also kick off.

Dow Jones Futures Today: Treasury Yields, Oil Prices, Inflation, Fed Meeting

After Monday's close, Dow Jones futures rose 0.5% vs. fair value, and S&P 500 futures moved up 0.6%. Nasdaq 100 futures gained 0.75% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

The 10-year Treasury yield surged higher to 3.36% Monday, its highest level since April 2011. Meanwhile, U.S. oil prices remain near recent highs, with West Texas Intermediate trading around $121 a barrel. In early March, WTI briefly topped out above $130 a barrel.

Producer prices are expected to rise 0.8% in May after moving up 0.5% in April, according to Econoday. Producer inflation is expected to jump 11% year-over-year. The producer price index is a measure of pricing strength based on selling prices received by domestic producers for their output.

The Fed will begin its latest two-day policy meeting Tuesday, and it is widely believed that the central bank will raise its benchmark interest rate by half a percentage point on Wednesday. But expectations that the Fed will be forced to move even more aggressively this year are on the rise since Friday's hot inflation report.

Stock Market Today On Monday, the Dow Jones Industrial Average dived 2.8%, while the S&P 500 moved down 3.9%. The tech-heavy Nasdaq composite tumbled 4.7%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 4.65%, and the SPDR S&P 500 ETF (SPY) declined 3.8%.

Oracle (ORCL) reported earnings after the close Monday. Oracle shares jumped 12% in extended trade after the company reported better-than-expected earnings and sales results.

Tesla (TSLA) stock skidded more than 7% Monday. Among Dow Jones leaders, Apple (AAPL) sold off 3.8% and Microsoft (MSFT) traded 4.2% lower in today's stock market.

As the stock market correction worsens, Dow Jones leaders Chevron (CVX), Merck (MRK) and Travelers (TRV) — along with Carlisle (CSL), HealthEquity (HQY), Northrop Grumman (NOC) and World Wrestling Entertainment (WWE) — are among IBD's top stocks to watch for Tuesday.