Vietnam Insight

U.S. stocks slightly recover after a 10-day losing streak – Core PCE Price Index to be released this week. On Thursday, during regular trading, the Dow inched up 0.04%, breaking a 10-day losing streak, the longest since 1974. Meanwhile, the S&P 500 and Nasdaq Composite both fell, shedding 0.09% and 0.1%, respectively. All three major indices are on track to end the week with significant losses following the Fed’s hawkish shift. Fed Chair Jerome Powell stated this week that the PCE is likely to show the 12-month inflation rate remains above the central bank’s 2% target. His comments followed the Fed’s widely expected quarter-point rate cut, but the central bank indicated fewer reductions in 2025 due to persistent inflation. 

Selling pressure dominates most sectors. VNINDEX closed at 1,254.8 points, down 11.3 points (-0.89%) with higher trading volume compared to the 20-day average. All industry groups declined today, except for the oil and gas sector which maintained a green color. Foreign investors net sell 480 billion dong. 

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.

Sell recommendation: ACB