The Russell 2000 (NYSE:IWM) navigated choppy trading today as investors waited on specifics surrounding the U.S. government’s plan to aid the housing and financial markets. Large financial firms Citigroup and JPMorgan Chase answered a call from lawmakers and regulators made on Thursday and temporarily halted foreclosures today until the government’s plan emerges.

Unclear details made for an unclear trading day, and stocks see-sawed on high, rudderless volatility. In the end, small caps closed down 2.06, or 0.46%, to 448.36, while the Dow closed down 1.04% and the S&P 500 fell 1%.

Aside from the financial rescue plan currently being voted on in the Senate front, bad news was thrown into the trading mix before the opening bell, when a sudden freefall in Lloyds Banking Group sparked a pullback off pre-market highs in stock index futures and pulled down sentiment into the U.S. stock market open. At one point, Lloyds was approaching 40% losses after saying that they would post a bigger loss than expected. Shortly after, Wells Fargo & Co. weighed on bank stocks further when the large cap reported a Q4 loss that was wider than expected.

Many small cap banks suffered on the sour news, especially Allied Irish Banks (NYSE:AIB), which tanked 19% on the close.

Crude oil prices rose 11.27%, or $3.83, to $37.81 per barrel, supported by enthusiasm for the anticipated approval of the U.S. stimulus program. Elsewhere on the commodities front, gold prices were taking a breather today, but have clearly benefited from safe-haven buying recently. Gold is currently at $942 per ounce.

Earlier this morning, the University of Michigan consumer sentiment survey came in at 56.2, which was well below the forecast of 61, and which appeared to trigger a mild selling extension in the stock market. A sub-index of the report on consumer expectations tumbled to the lowest level since May 1980.

Individual small caps on the move today included Savient Pharmaceuticals Inc. (Nasdaq:SVNT), which fell 19% on news that an FDA review of its gout . . .

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