Vietnam Insight

US stocks fell sharply, with concerns over rising inflation and recession. On Monday, the Dow dropped 2.08%, the S&P 500 fell 2.7%, and the Nasdaq Composite plunged 4%, with all three major indices hitting fresh multi-month lows. Megacap technology stocks led the downturn, with steep losses from Tesla (-15.4%), Nvidia (-5.1%), Apple (-4.9%),… On Sunday, President Donald Trump described the economy as being in “a period of transition” when asked about the risk of a recession. His tariffs have also heightened concerns that inflation could rise, potentially complicating the Federal Reserve’s ability to cut interest rates. Investors are now closely watching the latest US inflation data this week for further insights into price trends. Meanwhile, Delta Air Lines tumbled 11.2% in extended trading after cutting its profit and sales forecasts, citing weaker demand for US travel.

Resistance from the sellers and the Doji candlestick. VNINDEX closed at 1,330.28 (+4.23 points, +0.32%) with liquidity remaining high. The market had 191 green codes and 263 red codes. The group of stocks contributing the most to the market's growth was VCB, VIC, BCM while FPT LPB and EIB contributed to the market's decline. The market was differentiated, except for the real estate group which increased well, the remaining industry groups did not have many significant fluctuations. Foreign investors returned to net selling more than 500 billion VND.

Trading Strategy: The market has shown positive signals, breaking out of the sideways trading channel. The VN-Index is likely to maintain its uptrend, heading towards 1,350 points. Investors can increase their positions during dips with average volume and a narrow spread. In a negative scenario, if the 1,280-1,300 point level is lost, investors can reduce their portfolio weight to manage risk.