Market Rebound Amid Credit Jitters?

Welcome back to Week 3!

After a choppy start to October, markets finally stabilized — supported by easing yields and a quiet rebound in large-cap tech. The rally was broad but cautious: AI and semiconductor names led the way, while regional banks and healthcare lagged after renewed concerns over credit quality and policy talk around drug pricing.

Despite the mixed signals, I’m staying focused on balance: keeping my core tech holdings, looking for selective growth opportunities, and diversifying a bit more into bonds and global ETFs.

In this issue, I break down what drove this week’s rebound, why I adjusted my DCA from SPY-heavy to a 1:1 mix with VT, and what I’m watching next.

Data is provided by Google Finance
*Stock data as of market close, cryptocurrency data as of Friday 9:00pm ET

This week saw a steady rebound in equities: the S&P 500 rose 0.63%, the Nasdaq gained 0.45%, and the Dow Jones advanced 1.08%, recovering from the prior week’s sell-off. The biggest driver was the 1.09% decline in the 10-year yield, which helped reignite investor appetite for growth stocks and rate-sensitive sectors. Gold continued climbing above $4,200 per ounce as investors hedged against credit concerns, while Bitcoin dropped 7.6%, reflecting a mild risk-off tone in digital assets even as equities pushed higher.

AI and chip stocks surged again after Broadcom $AVGO ( ▲ 2.1% ) announced a new partnership with OpenAI to co-develop custom AI accelerators. The stock jumped nearly 10% this week, lifting sentiment across the semiconductor space.

Walmart $WMT ( ▲ 3.0% ) gained roughly 5% after revealing a new ChatGPT-powered shopping assistant, part of a broader AI push to enhance consumer engagement. The announcement helped offset broader retail weakness tied to slowing discretionary spending.

On the downside, regional banks came under pressure once again. Zions Bancorporation $ZION ( ▼ 1.44% ) plunged after revealing a $50 million loan charge-off related to internal fraud, while Western Alliance $WAL ( ▼ 2.94% ) also slid on renewed concerns about credit quality and exposure to commercial real estate.

The healthcare sector lagged the market, with Eli Lilly $LLY ( ▲ 1.64% ) and Novo Nordisk $NVO ( ▲ 1.79% ) both falling after renewed discussions in Washington about potential drug-pricing regulations.

My Take:
Markets are still rewarding AI-related optimism, but the cracks in financials shouldn’t be ignored. The divergence between tech strength and bank weakness reminds me of late-cycle behavior — money crowds into growth just as credit conditions quietly deteriorate. I think this week’s moves were more about positioning. If yields keep falling, tech could stay hot, but I’m watching banks as the early warning signal.

My overall strategy hasn’t changed much this week — I’m still holding my core positions in major U.S. indexes and large-cap tech while selectively looking for growth opportunities in AI and semiconductors. The broader market recovery is encouraging, but I’m not chasing the rally blindly. I’m keeping around 20% of my portfolio in cash, waiting for potential pullbacks to add exposure at better entry points.

In short, I’m still playing offense with quality growth names — but keeping enough defense on the table in case the market’s optimism fades.

Current Holdings

📈Recent Trades / Changes

The only adjustment I made this week was tweaking my dollar-cost averaging (DCA) between $VT ( ▲ 0.45% ) (Vanguard Total World Stock ETF) and $SPY ( ▲ 0.16% ) (S&P 500 ETF) — shifting from a 1:3 ratio to 1:1.

This change slightly reduces my US market concentration and increases exposure to global equities, especially emerging and developed Asia, which I think could outperform if the US slows down. With rising uncertainty around U.S. credit markets and potential volatility in the next earnings cycle, I’d rather start spreading risk more evenly across regions.

$NVDA ( ▲ 0.04% ) (Nvidia Corp)
I’m watching Nvidia closely ahead of its earnings on Nov 19. The stock is up about 90% since the dip in April, driven by continued AI infrastructure demand and the rollout of its Blackwell chips. Despite competition from AMD, Nvidia still dominates the AI GPU market and keeps expanding into networking and full-stack data-center systems.

If the stock pulls back 5–10% before earnings, I’m looking to add more shares. The valuation is rich, but long-term AI spending and software adoption still give Nvidia a solid growth runway.

小Lin说
One of the best Mandarin finance YouTubers breaking down global markets and macro trends in simple, visual terms.

The Psychology of Money” – Morgan Housel
Still one of my favorites — timeless lessons on behavior, compounding, and risk tolerance.

Chip War – Chris Miller
A must-read to understand the semiconductor geopolitics behind companies like Nvidia and TSMC.

This week’s action was mostly noise — markets swung between optimism and caution as yields edged lower and investors rotated back into tech. The overall tone remains indecisive: AI and semiconductors are holding up the major indexes, but there’s no clear direction across sectors. For now, the market feels like it’s just fluctuating within a range, waiting for the next big catalyst to set the tone.

For now, I’m staying disciplined: holding my core tech and index positions, adding only on pullbacks, and keeping a steady 20% cash buffer. The rally feels more like a positioning reset than a new bull leg — and I’d rather be patient than overextended.

Disclaimer: The information provided in this newsletter is for educational and informational purposes only and should not be construed as investment advice. I am not a licensed financial advisor, and the opinions expressed here are based on my personal research and portfolio decisions. Investing in securities involves risk, including the potential loss of principal. Past performance is not indicative of future results. Always do your own research or consult with a licensed financial professional before making investment decisions.