A broad software sector rout dominated overnight action, with TEAM (-7.7%), WDAY (-5.4%), INTU (-5.1%), PAYC (-5.8%), and CRM (-5.8%) all sliding on AI disruption anxieties, despite analyst reassurances about resilience. Meanwhile, geopolitical tensions sparked a materials and energy rally—DOW (+6.3%), CF (+5.1%), ALB (+5.4%), and MOS (+5.3%) surged—while luxury took a hit with EL down 10.7%. Within tech, a clear bifurcation emerged: AI infrastructure plays like DELL (+7.0%), SOXL (+3.94%), GLW (+9.4%), and TER (+5.2%) gained as investors rotated toward capex beneficiaries, while COIN collapsed 9.5% on stablecoin regulation fears and FICO fell 6.5% on delinquency concerns.
Buy the AI infrastructure dip:** DELL, GLW, and semiconductor exposure via SOXL remain compelling given robust corporate capex cycles, while avoiding the broader software malaise. **Avoid momentum-chasing:** Don't chase materials gains on geopolitical fumes—they're valuation relief trades, not conviction. **Sell weakness in CRM and TEAM** if positions exist; the AI disruption narrative won't reverse overnight, and valuations need time to reset in a higher-rate environment.