Vietnam Insight

Treasury yields declined amid growing expectations that the FED will cut interest rates. US stock futures edged lower on Tuesday following a strong close to both the month and the quarter, with the S&P 500 and Nasdaq Composite reaching new all-time highs. In Monday’s regular session, the S&P 500 rose 0.52% while the Nasdaq gained 0.47%, buoyed by solid gains in Big Tech names such as Microsoft and Meta, which also notched fresh record highs. The Dow Jones also added 0.63%. Investor sentiment was lifted after Canada rolled back its proposed digital services tax in a move aimed at easing trade tensions with the US. Markets are also awaiting developments on new trade agreements with key US partners, ahead of the expiration of President Trump’s 90-day reprieve on reciprocal tariffs. Meanwhile, Treasury yields declined amid growing expectations of Federal Reserve rate cuts later this year, further supporting the bullish outlook for equities.

Upward trend. VNINDEX closed at 1,376.07, up 4.63 points (+0.34%), with liquidity decreasing. There were 216 gaining stocks and 92 declining stocks in the market. The stock group contributing most strongly to the market's increase included VCB, TCB, and BID, while VHM, HPG, and SAB contributed to the market's decline. Foreign investors were net buyers of approximately 592 billion VND, with value primarily concentrated in MSN and NLG

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