Vietnam Insight

August 1 is a “hard deadline” for tariff payments. US stock futures edged higher on Monday as traders braced for a busy week of big-tech earnings, led by Alphabet and Tesla. Later today, Verizon, Domino’s Pizza and Cleveland-Cliffs are among the companies scheduled to release their quarterly results. So far this earnings season, more than 86% of the 59 S&P 500 firms that have reported have beaten expectations, according to FactSet. Investors also monitored trade developments after Commerce Secretary Howard Lutnick reiterated that August 1 is a “hard deadline” for tariff payments, while leaving the door open for continued negotiations. Last week, the S&P 500 and Nasdaq Composite climbed 0.59% and 1.51%, respectively, each reaching fresh all-time highs, while the Dow slipped 0.07%.

Right below the historical peak. The VN-Index closed the week at 1,497.2 points (+39.52 points, or +2.71%) on the weekly chart, with liquidity continuing to hit new highs. However, foreign net buying dropped to just over VND 1,000 billion, compared to over VND 5,000 billion the previous week. The index continued to rise sharply, led by large-cap stocks, particularly VIC and VHM. Meanwhile, mid-cap stocks also saw explosive growth in both liquidity and index performance. At this stage, the market is in overbought territory after five consecutive weeks of gains without correction. The RSI indicator is also signaling overbought conditions.

Trading Strategy: In technical correction sessions, investors can consider disbursing part of the investment in stocks with good business results expectations and benefiting from market upgrade expectations. Investors can consider investing in stocks that have attracted foreign investors recently, such as banking and real estate.