Vietnam Insight

The Fed is expected to keep interest rates unchanged at the upcoming meeting. US stock futures were little changed on Monday as investors weighed rising geopolitical risks following the intensifying conflict between Israel and Iran. In Friday’s regular session, the Dow tumbled 1.79%, the S&P 500 dropped 1.13%, and the Nasdaq Composite lost 1.3%. The market downturn followed Israel’s military strike on Iran, targeting nuclear sites and senior officials. Tehran retaliated swiftly, escalating the conflict into open warfare. Over the weekend, both sides launched further attacks on each other’s energy infrastructure, fueling a fresh surge in oil prices. Iran also threatened to close the Strait of Hormuz—a critical chokepoint for global oil shipments—adding to market jitters. Meanwhile, the Federal Reserve is expected to hold interest rates steady at its upcoming meeting, despite increasing pressure from President Trump to loosen policy. The central bank faces a complex backdrop of tariff-related uncertainty and rising geopolitical instability.

Resistance around the recent peak. VNINDEX closed at 1,315.49, down 7.5 points or 0.57%, with higher-than-average 20-day liquidity. There were 69 gainers and 263 decliners on the market. Banking, oil & gas, and retail were the best-performing sectors.The stocks contributing most to the market's gains were CTG, GAS, and PLX, while VHM, GVR, and VIC contributed most to the market's decline. Foreign investors were net buyers of 97 billion VND, primarily concentrating their purchases on CTG and NVL shares

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