Vietnam Insight

The market reacted strongly to Trump's criticism of the Fed Chair. On Monday, the Dow fell 0.48%, the S&P 500 dropped 2.36%, and the Nasdaq tumbled 2.55%, with all 11 S&P sectors ending lower—led by consumer discretionary, technology, and energy. Heavy losses hit megacap tech stocks, including Nvidia (-4.5%), Tesla (-5.8%), and Amazon (-3.1%). The decline followed criticism of Fed Chair Jerome Powell by President Donald Trump, who called him “Mr. Too Late, a major loser,” and demanded immediate rate cuts. Trump also hinted at the possibility of removing Powell, sparking concerns over central bank autonomy. Ongoing trade tensions with China further dampened sentiment, as negotiations showed little progress.

The market is re-accumulating. VNINDEX closed at 1,207.07 (-12.05 points, -0.99%) with a slight decrease in liquidity compared to the 20-session average. There were 181 advancing stocks and 339 declining stocks in the market, with main pressure coming from the real estate and securities groups, etc. Foreign investors net bought over 172 billion VND, with the value mainly concentrated in FPT and VIC stocks.

Trading Strategy: Long-term investors may consider allocating funds into stocks with strong fundamentals and a solid accumulation base at low weight. We can focus on stocks benefiting from domestic internal factors in sectors such as: Steel, banking, securities, and power.