Vietnam Insight

U.S. stocks continue to rise despite Moody’s downgrade. U.S. stock futures edged higher after Wall Street closed flat on Monday, as markets weighed a U.S. credit rating downgrade by Moody’s and the advancement of a tax-cut bill that could worsen the nation’s fiscal outlook. Investors looked ahead to remarks from several Federal Reserve officials later today for clues on interest rate policy. Meanwhile, President Trump Sunday criticized Walmart for suggesting it would raise prices due to tariffs, urging both the retail giant and China to “eat the tariffs”. The yield on the US 10-year Treasury note climbed toward 4.55% on Monday, its highest level since mid-February, while the 30-year yield surpassed 5% for the first time since April, reaching its highest point since October 2023. The moves came amid growing concerns over the US fiscal outlook following the loss of the country's top-tier credit rating. Moody’s downgraded the US credit rating to Aa1 from Aaa, citing escalating government debt and a widening budget deficit. 

Heighten volatility near 1,300. VNINDEX closed at 1,296.3 (-5.10 points, -0.39%) with liquidity around the 20-session average. The market had 110 gainers and 216 losers, with strong differentiation among sectors. The stocks that contributed the most to the market's growth were VIC, VHM, GEE while VPL VCB and FPT contributed to the market's decline. Foreign investors net sold nearly VND562 billion

Trading Strategy: Investors should prioritize observing the market and stop making new purchases, maintaining a moderate stock weighting after the market has approached its previous peak. Focus can be placed on stocks benefiting from domestic intrinsic factors in sectors such as steel, banking, securities, and energy. New opportunities may arise during pullbacks toward support levels.