Vietnam Insight

The U.S. CPI met expectations, leading to an almost 100% prediction of a 25 basis point Fed rate cut next week. In regular trading on Wednesday, the S&P 500 and Nasdaq Composite jumped 0.82% and 1.77%, respectively, while the Dow shed 0.22%. Those moves came after US inflation data for November came in line with expectations. Markets are now assigning a nearly 100% chance that the Fed will deliver another 25 basis point reduction next week. Investors now look ahead to producer inflation data on Thursday.

Foreign investors engaged in moderate net selling, while individual investors focused on accumulating banking and real estate stocks. The VN-Index closed at 1,268.8, down 3.21 points or 0.25%, with trading volume remaining flat compared to the 20-day average. In a baseline scenario, the VN-Index needs to form a narrow range with strong volume absorption before challenging the 1,290-1,300 resistance levels.

Trading Strategy: Many stocks have reached their target profit levels, allowing short-term traders to partially sell and lock in profits. Consider completely exiting positions when the VN-Index approaches the 1,300 level.

Buy recommendation: DRI

Summary of NLG Investor Meeting on 10/12/2024