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Hey, it’s Summer!
This week’s been a tough one, but I’m glad we pulled through. Tech and AI names led the pullback as investor sentiment turned cautious. In this issue, I’ll break down what drove the drop, which sectors managed to hold up, and share a few thoughts on what to watch — and how to react — when markets start pulling back.
Market Overview — (Nov 3 – 7, 2025)
Price | Weekly Change | |
|---|---|---|
S&P500 | $6,728.80 | -2.23% |
NASDAQ | $23,004.54 | -3.96% |
Dow Jones | $46,987.10 | -1.49% |
10 Year Interest Rate | $4.093 | -0.41% |
Bitcoin | $102,756.40 | -3.61% |
Gold | $4,001.21 | 0% |
Data is provided by Google Finance
*Stock data as of market close, cryptocurrency and gold data as of Friday 9:00pm ET
Markets saw a broad pullback across all three major indexes. The S&P 500 fell 2.23 %, the Nasdaq dropped 3.96 %, and the Dow Jones slid 1.49 %. Weakness was driven by renewed AI-valuation concerns, Michael Burry’s short positions in NVDA and PLTR, and lingering uncertainty from the ongoing U.S. government shutdown.
Bitcoin extended its downturn, falling 3.6 % as investors trimmed risk exposure amid the equity sell-off. Gold, on the other hand, showed resilience — dipping to around $3,900 mid-week before rebounding above the $4,000 level on Friday, signaling firm technical support at that range.
Sector Snapshot
U.S. Stock Market Weekly Heat map
This week’s heat map highlights broad weakness across most sectors, led by Technology and Consumer Discretionary. Semiconductors were hit hardest — NVIDIA (-7.1%), AMD (-8.8%), and Broadcom (-5.5%) all slumped as investors rotated out of high-valuation AI names. Software also saw steep losses, with Oracle (-8.9%) and Palantir (-11.2%) among the biggest decliners.
Financials held relatively firm, supported by Berkshire Hathaway (+4.5%) and large banks like JPMorgan (+0.9%), while Healthcare outperformed — Eli Lilly (+7.1%) and Amgen (+7.3%) lifted the sector on strong earnings and drug-pipeline optimism. Energy and Consumer Staples provided some defensive strength, with Coca-Cola (+2.4%) and ExxonMobil (+2.5%) advancing despite broader market weakness.
US Markets 🇺🇸
Tech stocks suffer worst week since April after ~$800 billion AI sell-off – Accelerated profit-taking in AI/tech names triggered the steepest weekly drop for tech indexes since early April, raising questions about valuations.
Longest shutdown in history costs US economy about $15 billion each week – The ongoing federal government shutdown is extracting a rising economic toll, with estimates of around $15 billion lost per week.
“The Stock Market Is Headed to a Correction, Charts Show” – Technical signals suggest the S&P 500 is close to a correction phase, even though it remains near all-time highs.
“U.S. chip-export controls are a ‘failure’ because they spur Chinese development, Nvidia boss says” — Huang bluntly states that U.S. restrictions on selling advanced chips to China have back-fired by motivating China to accelerate its own chip and AI development.
US economy at risk of wobble as lower-income consumers get squeezed – Lower-income households in the U.S. are increasingly feeling the pinch, creating vulnerability for broader consumer spending and economic momentum.
Global Markets 🌍
Global markets slip into correction mode – Equity markets around the world showed signs of pull-back beginning Nov 4, with futures pointing lower and volatility ticking up.
Pound hits lowest since April as investors anticipate UK tax rises; markets hit by AI valuation jitters – The UK’s currency fell as fiscal concerns mounted ahead of the budget, and global markets felt the ripple of AI valuation scrutiny.
November 2025 monthly outlook: global economy limps with headwinds building – Analysts warn that despite pockets of strength, the global economy is entering November with structural risk, policy fragmentation and geopolitical crosswinds.
Souring mood sets tech stocks on weekly drop in Asia and globally – Japan’s Nikkei dropped ~5 % for the week, South Korea’s Kospi tumbled~4.9 %, reflecting a global tech unwind.
My Take for This Week 📝
This week’s selloff reminded everyone that even strong markets need to cool off. Tech and AI names led the decline, with semiconductors and software taking the biggest hit, while defensive sectors like healthcare and consumer staples held up better. Ongoing concerns over inflated valuations, Michael Burry’s short positions, and the unresolved government shutdown all added to the cautious mood.
That said, it’s important to stay patient during downturns. If you believe in a company’s long-term fundamentals and operational strength, short-term volatility shouldn’t shake your conviction — the market often overreacts before finding its balance.
Looking ahead, keep an eye on the VIX index — if it spikes above key levels (30+), that could signal a potential opportunity to start adding positions again once fear peaks.
Lastly, I made a few new trades this week — all of them are documented in my Trade Journal, which you can check out in the paid version of the newsletter if you’re interested in a deeper look at my positions and reasoning.
Weekly Poll 🗳️
When markets fall, what do you usually do?
Last week’s Poll:
Will Gold remain above $4000 USD per ounce by the end of 2025?
Most popular answer: Yes (60%)
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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.