Russell 2000 futures rise

The Russell 2000 (NYSE: IWM) futures have moved higher and the small-cap index is likely to rise as investors await the Fed’s decision.

All eyes are on the U.S. Federal Reserve, which is meeting today to decide on monetary policy. A decision will be announced at 2:15 p.m. ET. Many observers are betting that falling house prices and restricted lending from banks will prompt the central bank to lower the federal funds rate to give the economy a lift.

The federal funds rate, the rate at which commercial banks make overnight loans to each other, currently stands at 4.5%. Financial markets have recently taken the view that a 0.25% cut is baked in, with more courageous voices anticipating a decline of 0.5%.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Genesis Microchip Inc. (GNSS), up 57% on news it is being purchased by STMicroelectronics NV (STM) for about $336 million.
• Allos Therapeutics, Inc. (ALTH), up 13% on news it will present a corporate overview at a conference in San Francisco.
• Smith Micro Software, Inc. (SMSI), up 13% on news it will buy part of Pctel Inc. (PCTI) for $59.7 million.

Biggest percentage losers:

• Spreadtrum Communications, Inc. (SPRD), down 7%.
• Orasure Technologies, Inc. (OSUR) down 3%.
• Cardica Inc. (CRDC) down 3% on news of a partial exercise of the over-allotment option granted to the underwriters of its public offering.

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