As hyperscalers spend big, small businesses are slashing capex

BofA Securities and NFIB data show U.S. small-business capital expenditure intentions have fallen to their weakest level since December 2009, signaling heightened caution among Main Street firms. The article highlights a divergence: large hyperscale cloud and tech firms are ramping spending while smaller businesses slash capex, a split that can concentrate growth and market gains in big-cap tech names and leave broader economic activity and small-cap sectors under pressure. For the US SP 500, this means headline index performance may be supported by a narrow group of large-cap spenders even as underlying breadth and cyclical earnings risk weaken. Investors should watch capex and small-business sentiment as potential headwinds to broader economic growth and to sectors tied to Main Street activity.