Small-cap stocks flew higher Tuesday along with the broader market on word of the

Federal Reserve's

big rate cut as well as on positive news from a variety of sectors.

The Russell 2000 was modestly buoyant through midafternoon before shooting up 23.92 points, or 3.1%, to 799.73 late in the day; the S&P SmallCap 600 performed similarly, lately surging 3% at 422.39.

Among individual names, one of the biggest price gainers overall was

Factory Card & Party Outlet

( FCPO), shares of which more than doubled to $16.18 after AHH Holdings agreed to buy the Illinois party-store chain for $16.50 a share. The all-cash deal is worth about $72 million.

Similarly, Baltimore's

Target Logistics

(TLG)

soared more than 32% after Mainfreight agreed to take it out for $2.50 a share in cash, or roughly $53.7 million. Target says the deal, which should close in the fourth quarter, represents a 28.8% premium to its prior three-month average closing stock price. Shares of the freight-forwarding-services company were up 59 cents to $2.42.

Away from M&A news,

Energy Focus

(EFOI) - Get Report

vaulted 38% after the Solon, Ohio, company received orders to install its EFO downlight system in a

Wal-Mart

(WMT) - Get Report

SuperCenter and in a Sam's Club location, both in Mexico. Terms weren't disclosed. Energy Focus shares climbed $2.13 to $7.73 in heavier-than-usual trading.

Solar-energy semiconductor

Ascent Solar Technologies

(ASTI)

, meanwhile, leapt more than 25% after saying it will develop a new "brise soleil" product line with Hydro Building Systems, a division of Norway's

Norsk Hydro

( NHY), using Ascent's thin-film flexible solar modules. Brise soleil involves overhangs mounted externally to buildings for reduction of direct radiation and heat.

The companies plan to present designs and prototypes in November at the Batimat international building exposition in Paris. Ascent shares added $2.45 to $12.15. Norsk shares were recently up 3.3% at $41.85.

Among those on the downside, however, was

Micrus Endovascular

( MEND). Shares plummeted some 26% after the San Jose, Calif., medical-device maker slashed its fiscal 2008 sales guidance to between $65 million and $75 million from the prior range of between $80 million and $85 million. That's at least $5.3 million under the consensus estimate from Thomson Financial. Shares were trading at $17.42.

Animal Health International

(AHII)

swung to a fiscal fourth-quarter loss of $719,000, or a penny a share, vs. a nickel-a-share gain last year. Shares of the Westlake, Texas-based maker of animal-health products slid 13.5% to $9.85.

And

Furniture Brands International

(FBN)

of St. Louis predicted a third-quarter loss of between 19 cents and 23 cents a share. Excluding 22 cents worth of one-off items, that should miss the Street's nickel-a-share income target by at least 2 cents. Shares of the furniture maker were off 99 cents, or 9.2%, to $9.83.