Vietnam Insight

U.S. stocks recovered after the DeepSeek incident. On Wednesday, the Dow surged 0.71%, marking its best performance in nearly two weeks. The S&P 500 and Nasdaq Composite also saw gains of 0.39% and 0.19%, respectively, driven by a 5.2% jump in Nvidia shares as artificial intelligence stocks clawed back losses from the DeepSeek debacle. Investors also brushed off concerns about tariffs, as both the US and its trading partners have adopted a cautious approach so far. Strong earnings reports and solid economic data further fueled positive market sentiment.

Recovery trend. VNINDEX closed at 1,269.61 (+4.93 points, +0.39%) with higher-than-average 20-session liquidity. Mid-cap stocks attracted cash flow, and a few blue-chip stocks kept the market stable. The VN-Index opened with a gap up and maintained its upward momentum throughout the trading session. In the short-term trend, the market has approached the resistance zone of 1275 - 1280. The VN-Index is likely to encounter fluctuations at the 1280 resistance zone as selling pressure in this area is relatively strong in many previous tests.

Trading Strategy: The market is currently trending towards a sideways trading pattern. For short-term trading, investors can consider deploying capital around the 1,240-point range and gradually take profits as it approaches 1,300 points. With a buy-and-hold strategy, investors can deploy additional capital when the VN-Index breaks out of and successfully defends the 1,300-point zone.