Vietnam Insight

The correction phase of the US stock market. U.S. stock futures fell modestly on Wednesday after a weak session on Wall Street, as doubts grew over the sustainability of the recent market rally. The S&P 500 snapped a six-day winning streak, the Nasdaq saw its first loss in three sessions, and the Dow ended a three-day run of gains. Investors remained focused on developments surrounding the federal budget bill and widening deficit. On the global front, tensions resurfaced after China accused Washington of undermining recent trade talks in Geneva, following a U.S. Commerce Department warning over Huawei chips. Meanwhile, Fed officials continued to signal a prolonged rate pause.

Heighten volatility near. 1,300 VNINDEX closed at 1,315.2 (+18.86 points, +1.45%) with liquidity around the 20-session average. The market had 193 stocks increasing and 133 stocks decreasing, the real estate group led the wave thanks to VIC stocks. The stocks contributing the most to the market's increase were VIC, VHM, TCB while GAS NVL and PLX contributed to the market's decrease. Foreign investors net sold nearly 517 billion, the value mainly concentrated in VHM and FPT stocks.

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.