U.S. stock futures rose early Tuesday morning after the S&P 500 on Monday dropped back into bear market territory ahead of the Federal Reserve’s two-day policy meeting this week.

Dow Jones Industrial Average futures rose 216 points, or 0.71%. S&P 500 and Nasdaq 100 futures climbed 0.93% and 1.18%, respectively.

The moves came after an intense sell-off during the Monday regular session on Wall Street. The S&P 500 slumped 3.9% to its lowest level since March 2021, and falling more than 21% from its January record.

Meanwhile, the Dow tumbled more than 876 points, or 2.8%, which is roughly 17% off its record high. The Nasdaq Composite dropped nearly 4.7%, or more than 33% off its November record.

Investors are bracing themselves for the possibility of a larger-than-expected interest rate hike this week after CNBC’s Steve Liesman confirmed on Monday that the Federal Reserve will “likely” consider a 75-basis-point increase, which is greater than the 50-basis-point hike many traders had come to expect. The Wall Street Journal reported the story first.

Traders now see a more than 90% chance of a 75-basis-point rate hike at this week’s Fed meeting, which concludes Wednesday, according to the CME Group’s FedWatch tool that measures pricing in the fed funds futures markets.

Some investors are also expecting a more hawkish tone from the central bank after last week’s inflation reports showed prices running hotter-than-expected.

“I think they are going to do 75 basis points,” Ed Yardeni, president of Yardeni Research, said during CNBC’s “Closing Bell” on Monday.

“I think that Powell on Wednesday when he does his press conference will indicate that there’ll be another one coming at the July meeting and maybe another one at the September meeting. I think it’s time for him… to show that he really is concerned about inflation,” he continued.

Elsewhere, shares of Oracle jumped nearly 15% in extended trading after the software company reported an earnings beat boosted by a “major increase in demand” in its infrastructure cloud business.

Wall Street is also expecting the latest reading on the May producer price index on Tuesday before the bell at 8:30 a.m.