NEW YORK (Associated Press) - The Standard & Poor's SmallCap 600 Index fell sharply on Friday amid a day of market-wide declines, with shares of Tuesday Morning Corp. taking the biggest hit after an analyst downgraded the discount retailer.

The S&P 600 _ which tracks stocks with a market capitalization between $300 million and $2 billion _ lost 4.65 points, or 1.3 percent, to 348.25.

Shares of Tuesday Morning plunged 95 cents, or 23.4 percent, to $3.05 after hitting an all-time low of $3.01 earlier in the session. Late Thursday, Deutsche Bank's Dave Weiner downgraded the home-furnishings retailer to "Sell" from "Hold" after the company posted sharply lower same-store sales in the fourth quarter and predicted a quarterly loss.

Shares of BankAtlantic Bancorp Inc. gave up 28 cents, or 18.4 percent, to $1.24. The stock hit an all-time low of $1.16 in earlier trading.

Savings and loan Downey Financial Corp. lost 26 cents, or 12.6 percent, to $1.80 after hitting an all-time low of $1.66.

On the rising side, shares of mattress maker Select Comfort Corp. gained 8 cents, or 6.6 percent, to $1.30. The stock has withered 83 percent since the start of the year.

Regional bank Irwin Financial Corp. rose 23 cents, or 9.8 percent, to $2.58.

UCBH Holdings Inc. rose 25 cents, or 8.7 percent, to $3.12.

Small-cap companies make up about 3 percent of the total U.S. securities market, but are often cited as good investments due to their low valuations and potential to grow into big-cap stocks.