Diverging Fortunes: Large Caps Thrive While Small Businesses Struggle
The economic landscape reveals a stark divide. Amazon and Nvidia exemplify corporate giants achieving record profits and stock valuations, while small businesses face existential pressures. ADP data shows private firms with under 50 employees have shed 120,000 jobs in November alone—marking six consecutive months of cuts.
LSEG reports S&P 500 companies grew net income by 12.9% last quarter, contrasting sharply with Bank of America Institute findings of declining earnings for small enterprises. Almost Famous Popcorn’s CEO Sydney Rieckhoff typifies the trend, scaling seasonal hires from 15 workers to just five amid softening demand.
Federal Reserve Beige Book data confirms this bifurcation: discretionary spending contracts at the mass market level while luxury retail maintains momentum. The disparity underscores growing economic stratification—those with capital continue deploying it, while others retrench.
