Tech stocks are dominating overnight gains with the Nasdaq (QQQ +1.18%, TQQQ +3.45%) outpacing broader indices, fueled by AI infrastructure plays like DDOG (+7.9% on GPU monitoring launch), LITE (+5.3% on accelerating data center demand), and semiconductor strength in SNDK and INTC. Financial services and communication services added conviction—CBOE surged 9.6% on earnings beats and guidance raises, while PSKY jumped 8.7% following Morgan Stanley's double upgrade on AI-driven entertainment value. Healthcare, however, broke ranks with AMGN plunging 5.2% on FDA's Tavneos withdrawal proposal and SYK falling 5.4% due to cyberattack disruptions, while consumer defensive CLX cratered 10% on margin misses and guidance cuts.
Buy:** Core AI infrastructure beneficiaries (DDOG, LITE, memory/semiconductor names) remain in favor on durable secular demand; consider nibbling on CBOE and AIG (both beat and raised) for financial services exposure. **Avoid:** AMGN faces binary regulatory risk and should be sidelined until clarity emerges; CLX is structurally challenged and warrants avoidance. **Hold:** INTC and ORCL are riding momentum but lack fresh catalysts—wait for clearer Q1 trend confirmation before adding.