Vietnam Insight

FED kept interest rates unchanged – the market forecasts an additional 50 basis point cut this year. In Wednesday’s regular session, the Dow gained 0.92%, the S&P 500 rose 1.08%, and the Nasdaq Composite jumped 1.41%. The gains followed the Fed’s decision to hold rates steady while projecting multiple rate cuts amid signs of slowing economic growth and weakening employment. Meanwhile, upside risks to inflation remain due to President Donald Trump’s trade policies, but Fed Chair Jerome Powell downplayed the potential impact of tariffs, calling them short-lived or transitory. Investors now await weekly jobless claims data for further labor market insights. The Fed kept the federal funds rate unchanged at 4.25%-4.5% during its March 2025 meeting, extending the pause in its rate-cut cycle that began in January, and in line with expectations. 

Foreign investors actively sold FPT. VNINDEX closed at 1,324.63 (-6.34 points, -0.48%) with slightly reduced liquidity. The market had 139 green codes and 320 red codes. The stocks that contributed the most to the market's increase were GVR, VIC, LPB while FPT MWG and VPB contributed to the market's decline. The main industry groups all decreased in the session, with the deepest decrease being technology. Foreign investors net sold 1,405.61 billion VND, focusing mainly on FPT.

Trading Strategy: The market has shown positive signals, breaking out of the sideways trading channel. The VN-Index is likely to maintain its uptrend to reach 1,350 points. After several consecutive rising sessions, the VN-Index may experience alternating declining sessions in the coming weeks. Investors can increase their positions during these declining sessions with average liquidity and a narrow spread. In a negative scenario, if the 1,280-1,300 point level is lost, investors may reduce their portfolio weight to manage risk.