Vietnam Insight

The annual inflation rate in the US dropped to 2.3% in April. US stock futures were little changed on Wednesday after technology stocks powered another rally in the previous session. In regular trading on Tuesday, the S&P 500 gained 0.72%, while the Nasdaq Composite jumped 1.61%, marking its fifth consecutive winning session. In contrast, the Dow slipped 0.64%, dragged down by a sharp decline in UnitedHealth. The S&P 500 has now turned positive for the year, buoyed by easing US-China trade tensions and softer inflation data, which lifted investor sentiment. The annual inflation rate in the US eased to 2.3% in April, the lowest since February 2021, from 2.4% in March adfsdnd below forecasts of 2.4%

The short-term recovery continues. VNINDEX closed at 1,283.26 (+15.96 points, +1.26%) with liquidity around the 20-session average. The market had 200 stocks increasing and 111 stocks decreasing, all major industry groups increased notably, including technology, finance and industry. The stocks contributing the most to the market's growth were TCB, VIC, GVR while HPG, MSN and DHG contributed to the market's decline.

Trading Strategy: Long-term investors may consider disbursing into stocks with solid fundamentals that benefit from domestic internal drivers such as steel, banking, securities, and energy. However, the allocation to stock should be reduced as many stocks have already recovered significantly from their bottom levels.

Buy recommendation: VCI