Vietnam Insight

U.S. employment data came in below expectations. During regular trading on Wednesday, the Dow slipped 0.22%, snapping a four-day winning streak. The S&P 500 edged up 0.01%, while the Nasdaq Composite rose 0.32%. Markets struggled for direction as investors digested a sharp slowdown in private-sector hiring. The latest ADP report showed just 37,000 jobs added in May—well below forecasts and the lowest reading in more than two years. The weak data has cast a shadow over the upcoming nonfarm payrolls report, fueling concerns that trade policy uncertainty may be starting to drag on the labor market. The US Dollar Index slipped toward 98.8 on Wednesday, edging closer to Tuesday’s six-week low of 98.6, as a string of weak economic data raised fresh concerns about the US outlook. The latest ISM services PMI showed the sector contracted in May for the first time in nearly a year, dragged down by a sharp drop in new business and a surge in input costs, likely driven by new tariffs

Resistance around the recent peak. VNINDEX closed at 1,345.74 (-1.51 points, -0.11%) with average liquidity. The market had 153 stocks increasing and 151 stocks decreasing, most of the financial sector was adjusted. The stocks that contributed the most to the market's increase were VNM, EIB, MSN while GAS, VHM, TCB contributed to the market's decrease. Foreign investors sold a slight net of 9 billion, the value mainly concentrated in VHM and STB stocks.

Trading Strategy: Investors are temporarily holding off on buying stocks that have already seen strong gains, as capital may shift toward stocks trading below their 200-day or 50-day moving averages. For new buying positions, priority can be given to real estate and banking stocks that are trading at low levels with a consolidation base; however, the allocation should remain modest.