Vietnam Insight

U.S.–China reach framework trade agreement. US stock futures inched lower on Wednesday as investors adopted a cautious stance ahead of the latest Consumer Price Index report, which may offer insights into the economic impact of recent tariffs. Market participants also looked for further clarity on US–China trade negotiations. Commerce Secretary Howard Lutnick said talks were going “really, really well,” suggesting discussions could continue into Wednesday if necessary. In regular trading on Tuesday, the S&P 500 and Nasdaq Composite rose 0.55% and 0.63%, respectively, for their third straight positive session. The Dow also gained 0.25%. Gains were broad-based, with 10 of the 11 S&P 500 sectors finishing higher, led by energy, consumer discretionary, and healthcare. Technology stocks also outperformed, driven by notable moves from Tesla (+5.7%), Meta Platforms (+1.2%), and Alphabet (+1.3%). Looking ahead, earnings results from Chewy and Oracle are due later Wednesday.

Resistance around the recent peak. VNINDEX closed at 1,316.23, marking a gain of 5.66 points (+0.43%), with liquidity below the 20-day average. The market saw 162 advancing stocks and 135 declining stocks, with the recovery primarily driven by the real estate and banking sectors.The stocks contributing most significantly to the market's increase were VHM, GEE, and VRE, while FPT, CTG, and GAS weighed on the market. Foreign investors net bought 311 billion VND, mainly focusing on EIB and VIX.

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.