Stock market today: Live updates

These are the stocks making the biggest moves in midday trading:

• Walt Disney — Shares of the entertainment giant gained 2% after a big box office debut for “Deadpool & Wolverine.”
• DexCom — Shares of the diabetes company were trading 5% higher, recouping some of their losses from Friday.
• On Semiconductor — Shares jumped nearly 13% after the chip company reported financial results that topped expectations.

Read the full list of stocks moving here.

— Lisa Kailai Han

The recent trade into small-cap stocks may not be losing steam just yet.

The iShares Russell 2000 ETF (IWM) gained nearly 0.9% in premarket trading, signaling the market’s broader rotation into small-cap stocks could continue this week. The Russell 2000 index of small caps ended last week 3.5% higher, and is up 12% over the past month.

Boosting this rotation is the expectation that central bankers will soon cut interest rates and that the improved rate outlook and inflationary environment should then boost small caps and other cyclical areas areas of the market, which tend to have higher financing costs.

— Pia Singh

The S&P 500’s decline from its July 16 all-time high may not be over, according to market history collected by Sam Stovall.

From its high to the low last week, the drop in the S&P 500 totaled 4.7%, according to the chief investment strategists at CFRA. Since 1990, 68% of all declines of 4.5% or more became pullbacks within a “matter of weeks,” wrote Stovall in a Monday note. The strategist defines a pullback as a decline of 5% to 9.9%.

Oppenheimer strategist John Stoltzfus noted that, after last week’s volatile market action, the prospects of a broadening rally out of megacap tech is becoming more plausible.

The S&P 500 and Nasdaq Composite fell last week, while the small-cap Russell 2000 and Dow Jones Industrial Average posted gains.

It’s not so much that investors are abandoning the ‘Magnificent Seven’ stocks and the domination of market performance by the largest tech names but rather the broadening to us looks like a realistic perception by market participants that the next leg up requires a wider and less concentrated approach for stocks to move higher as the Fed gets nearer to cutting its benchmark rate,” he said in a note.

— Fred Imbert

The Federal Reserve’s Federal Open Markets Committee meets on Tuesday and Wednesday, but the market is not expecting a rate cut this week.

Traders in the Fed fund futures market put the probability of the central bank holding rates steady for this meeting at roughly 96%, according to the CME Fed Watch tool.

However, traders do overwhelmingly expect one cut at the September meeting.

— Jesse Pound

Equity futures were calm at 6 p.m. in New York, with Dow futures adding about 50 points.

— Jesse Pound