Broadening Pain: Ugly Session Sees Selling Spread to Cyclicals, Defensives & Small Caps Amid Labor Market Warning Signs

Another ugly session, though unlike other sessions this week, selling broadened out to cyclicals and defensive sectors, with Small Caps leading to the downside. Alphabet (GOOG -0.6%) topped earnings estimates, but a much larger than expected FY26 capital expenditure plan of $175-$185 billion led to questions about if the company can continue to generate meaningful…