Vietnam Insight

The Fed has no plans to cut interest rates further in the near future. On Tuesday, in regular trading, the Dow and S&P 500 saw modest gains of 0.28% and 0.03%, respectively, while the Nasdaq Composite dropped 0.36%. These mixed results came amid growing concerns over President Trump’s blanket 25% tariffs on steel and aluminum imports, raising fears of a broader trade war. Federal Reserve Chair Jerome Powell also reiterated his cautious stance before the Senate Banking Committee, stating that the Fed has no immediate plans to cut interest rates further, citing a resilient economy and persistent inflation that remains above the 2% target. Looking ahead, investors are focused on the release of the January CPI report and Powell’s testimony before the House of Representatives.

Blue-chip stocks recovered. VNINDEX closed at 1,268.45 (+5.94 points, +0.41%) with higher-than-average liquidity over the past 20 sessions. Blue-chip stocks rebounded strongly, especially some bank stocks continued to reach new peaks. The VN-Index traded sideways in a narrow range after failing to test the 1275-point zone. The short-term trend is still considered positive as the MACD maintains a positive reversal signal above the zero line, and the index will need time to re-accumulate

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.