Vietnam Insight

Delaying the 90-day tariff, markets surged strongly. In regular trading on Wednesday, the Dow and S&P 500 jumped 7.87% and 9.52%, respectively, for their biggest one-day gains in five years. The Nasdaq Composite also surged 12.16% for its best single-day performance since 2001. Those gains came as Trump offered a 90-day reprieve on his reciprocal tariffs for countries that have not retaliated. Still, Trump continued escalating the trade war with China by raising their tariffs to 125%, while measures on the EU are unlikely to be paused because of Brussels' retaliation announcement.

The market continued its downward trend. The VNINDEX closed at 1,094 (-38.49 points, -3.5%) with liquidity more than 50% higher than the 20-session average. Several industry groups such as securities, import-export, oil and gas, and industrial real estate continued their downward trend by at least 5-6%. Foreign investors were net buyers of nearly VND 254 bn.

Trading Strategy: Investors should not rush to bottom-fish when the index may continue to decline. It's necessary to wait for the market to establish a price base for at least 2-3 sessions. For stocks that violate the short-term cut-loss threshold, investors should sell to protect their accounts

President Trump postpones tariffs for 90 days with more than 75 countries, increases tariffs on China by 125%.