Vietnam Insight

The correction phase of the US stock market. US stock futures held steady on Thursday after major indexes tumbled in the previous session amid renewed concerns over the ballooning federal deficit. On Wednesday, the Dow dropped 1.91%, the S&P 500 fell 1.61%, and the Nasdaq Composite declined 1.41%. The sharp losses followed a spike in Treasury yields driven by investor anxiety over a proposed federal budget that could exacerbate the already sizable deficit. However, the bill encountered resistance as several blue-state Republicans threatened to withhold support unless it included a larger deduction for state and local taxes—a key issue that could undermine Trump’s broader tax agenda. Investors are now awaiting Thursday's weekly jobless claims report for insights into the strength of the labor market.

Heighten volatility near 1,300. VNINDEX closed at 1,323.05 (+7.9 points, +0.60%) with liquidity around the 20-session average. The market had 137 stocks increasing and 183 stocks decreasing, the real estate group continued to lead the wave. The stocks contributing the most to the market's increase were VHM, VIC, HVN while VPL GVR and FPT contributed to the market's decrease. Foreign investors net bought nearly 479 billion, the value mainly concentrated in STB and VHM 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.