Vietnam Insight

Easing tensions. US stock futures surged on Wednesday after President Donald Trump confirmed he has no plans to remove Federal Reserve Chair Jerome Powell. The rally followed a strong session on Wall Street Tuesday, where the Dow rose 2.66%, the S&P 500 gained 2.51%, and the Nasdaq Composite advanced 2.71%. Markets were buoyed by comments from Treasury Secretary Scott Besset, who suggested a potential de-escalation in the ongoing trade dispute with China. Speaking at a JPMorgan-hosted summit, Besset described the current tariff situation as “unsustainable” and hinted that negotiations could soon move toward a resolution. However, momentum moderated later in the day after Besset tempered expectations, noting that formal talks with China had not yet begun and cautioning that the negotiation process could be a “slog.” In corporate news, Tesla missed both earnings and revenue estimates for the first quarter.

The market is re-accumulating. VNINDEX closed at 1,197 (-9.94 points, -0.82%) with higher liquidity compared to the 20-session average. The market had 132 gainers and 400 losers, with main pressure coming from the chemicals and construction materials sectors. Foreign investors net bought over 520 billion VND, with the value mainly focused on HPG and MWG 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.

Trump said tariffs on China "will come down substantially, but not to zero percent.