Vietnam Insight

U.S. inflation expectations rise. On Thursday, with the Dow gaining 0.77%, and the S&P 500 and Nasdaq Composite climbing 1.04% and 1.5%, respectively. Excluding food and energy, the PPI rose 0.3%, in line with forecasts but the annual rate came in at 3.6%, above expectations of 3.2%. Also, figures for the previous months were revised sharply higher. A stronger-than-expected PPI reinforced expectations that the Federal Reserve will keep rates steady. Meanwhile, markets remain on edge over President Trump’s tariff policies, which have already raised consumer inflation expectations. 

Accumulation and cash flow rotation trend. VNINDEX closed at 1,270.35 (+3.44 points, +0.27%) with liquidity matching the 20-session average. Bank stocks remained strong, while electricity, fertilizer, and rubber stocks saw notable gains. In the short-term trend, the VN-Index has established a consolidation zone with a narrowing range of fluctuation. The current short-term sideways zone will act as an absorption of selling pressure around the resistance zone of 1275 - 1280 before the cash flow factor confirms a positive return.

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.