Amazon's launch of Supply Chain Services triggered a logistics bloodbath overnight, with UPS (-10.5%), FedEx (-9.9%), and Old Dominion (-6.9%) all taking heavy hits as investors repriced competitive risk to their core businesses. Meanwhile, memory chip stocks rallied hard—Micron (+6.8%) and SanDisk (+6.6%)—on fresh "Buy" coverage and rising chip prices tied to AI infrastructure buildout, with Oracle (+5.5%) also gaining on a $16 billion Michigan data center deal. Broader indices finished mixed (SPY -0.39%, QQQ -0.17%), but the real action was sector-level: industrials got crushed by the Amazon shock, tech remained buoyed by AI tailwinds, and weakness in cruise lines (NCLH -9.0%) and insurance (Loews -7.5%) reflected consumer demand concerns and underwriting pressures.
Avoid** the entire logistics complex (UPS, FDX, CHRW) until the market digests Amazon's true competitive threat and these stocks stabilize—the 10%+ selloffs suggest panic selling, but fundamentals are now materially impaired. **Buy** memory and AI infrastructure plays (MU, ORCL) on dips, as today's moves validate the secular AI capex thesis; SNDK also looks solid on valuation into rising chip prices. **Hold** broad market exposure (SPY/QQQ) given modest overnight declines, but rotate away from consumer discretionary (cruise, freight) until demand signals improve.