Small-cap stocks, on average, outperform their large-cap peers after a 50-basis-point rate cut by the Fed, <a href="https://www.barrons.com/articles/smallcaps-stocks-market-record-fed-rate-cut-1effb0fd?mod=hp_LATEST">according</a> to Bank of America (BofA). Last week, the Fed <a href="https://kz.kursiv.media/2024-09-18/rntt-fed-rate/">lowered</a> the fed funds rate for the first time since 2020.

Small-cap stocks typically outperform large caps after 50 bp Fed rate cut — BofA

On Thursday, September 19, Sidus Space, a space-as-a-service company, saw its stock <a href="https://www.nasdaq.com/market-activity/stocks/sidu">rise</a> about 5% after <a href="https://investors.sidusspace.com/news-events/press-releases/detail/201/sidus-space-enhances-lizziesat-constellation-operations">announcing</a> a new partnership with Portugal’s  Neuraspace, which is to supply Sidus Space with real-time space traffic tracking.

Sidus Space stock jumps after new partnership announced

Soleno Therapeutics, which develops drugs to treat rare genetic diseases, has seen its stock surge over 1,200% in the last year. In August, one of its drugs received Priority Review designation from the U.S. Food and Drug Administration (FDA). The medication is a pill designed to treat Prader-Willi syndrome, a congenital condition marked by obesity, short stature, reduced gonadal function, and intellectual disabilities.

Drugmaker for rare disease soars 1,200% in last year

CNS Pharmaceuticals, a maker of drugs to treat brain cancer, has received a notice of noncompliance with listing standards from Nasdaq, with delisting a possibility. In after-hours trading on Wednesday, September 18, the stock <a href="https://finance.yahoo.com/quote/CNSP/">retreated</a> more than 3%, followed by a similar decline at the open this morning, Thursday, September 19.

Brain cancer drugmaker CNS Pharma warns of possible Nasdaq delisting

The U.S. Fed has <a href="https://kz.kursiv.media/2024-09-18/rntt-fed-rate/">lowered</a> the federal funds rate for the first time since the start of the pandemic, cutting by 0.5 percentage points. Investors had been anticipating a rate cut for several months now: starting in July, they have been rotating into small-cap stocks, which are expected to be a key beneficiary from lower rates.

How to choose the right small-cap investment

Talkspace stock <a href="https://finance.yahoo.com/quote/TALK/">jumped</a> more than 13% on Tuesday, September 17, following the <a href="https://investors.talkspace.com/news-releases/news-release-details/talkspace-partners-amazon-health-services-help-millions-discover">announcement</a> of a partnership with Amazon Health Services. Talkspace is set to become the first virtual behavioral health provider to have its services on the Amazon platform.

Talkspace jumps thanks to announced partnership with Amazon Health Services

Quotes on Sonoma Pharmaceuticals <a href="https://www.nasdaq.com/market-activity/stocks/snoa">soared</a> over 23% on Tuesday, September 17, following the announcement that the U.S. Food and Drug Administration (FDA) had expanded over-the-counter indications for its flagship product, Microcyn wound cleanser.

Sonoma stock soars after expanded indications for its flagship drug announced

Shares of Zedge, which owns an emoji encyclopedia and makes ringtones and wallpapers for mobile phones, <a href="https://www.marketwatch.com/investing/stock/zdge/analystestimates?mod=mw_quote_tab">rose</a> over 5% on Monday, September 16, buoyed by the <a href="https://feeds.issuerdirect.com/news-release.html?newsid=7968726105762971">announcement</a> of a new share repurchase program for up to $5 million.

Stock of emoji encyclopedia creator jumps after new buyback announced

The micro-cap company Sonendo, which makes dental cleaning systems, has lost 65% of its value over four days despite an absence of news. Its market capitalization now stands at $1.34 million. The main short-term challenge for the company is securing new financing, analysts say.

Maker of dental cleaning systems loses 65% of value in four days

On Friday, September 13, quotes on Heart Test Laboratories (doing business as HeartSciences), which is developing AI-powered technology for early detection of heart disease, <a href="https://finance.yahoo.com/quote/HSCS/">surged</a> almost 9% on the Nasdaq. This came after the company <a href="https://ir.heartsciences.com/pr/heartsciences-closes-nondilutive-financing-to-increase-its-cash-runaway-ahead-of-upcoming-fda-submission-88c2f628">announced</a> that it had secured $1.9 million in non-dilutive financing to extend its cash runway ahead of upcoming FDA submissions.

Shares of HeartSciences get a bump from announcement of non-dilutive financing

Shares of Tenon Medical, a micro-cap company that makes implants for sacroiliac joint fusion, surged over 71% on Friday, September 13. This came off a gain of 44% a day earlier. The trigger was the <a href="https://finance.yahoo.com/news/tenon-r-medical-announces-introduction-005600240.html">announcement</a> of plans to launch a new, more compact implant, while the company has also disclosed a secondary offering and private placement.

Implant maker Tenon Medical nearly triples its market capitalization in two days

This quarter, the small-cap-tracking Russell 2000 index has outperformed the S&amp;P 500, which measures the performance of the largest publicly traded companies in the U.S. This comes amid rising market expectations for Fed rate cuts. Since last summer, interest rates have been at their highest level in 22 years, <a href="https://www.marketwatch.com/story/small-cap-stocks-beating-s-p-500-this-quarter-as-investors-expect-fed-rate-cuts-4ba8352f?mod=hp_LATEST">notes</a> MarketWatch.

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