Vietnam Insight

Core PCE price index rose higher than expected. US stock futures rose sharply on Thursday, lifted by strong earnings results from tech heavyweights Meta Platforms and Microsoft. Futures tied to the S&P 500 and Nasdaq 100 advanced 0.7% and 1%, respectively, while Dow futures gained 0.2%. In extended trading, Meta surged roughly 12% after reporting robust quarterly results and issuing an upbeat outlook for Q3 sales. Microsoft jumped around 8% after beating earnings expectations and revealing that annual revenue from its Azure cloud division had surpassed $75 billion. On Wednesday, regular trading saw the Dow slip 0.38% and the S&P 500 edge down 0.12%, while the Nasdaq Composite rose 0.15%. Those moves followed the Federal Reserve’s decision to hold interest rates steady as officials evaluate the inflationary effects of President Trump’s recent tariff increases. The decision was not unanimous, with Fed governors Michelle Bowman and Christopher Waller voting in favor of a 25 basis-point rate cut.

Correction pressure persist. VNINDEX closed at 1,502.52 (-5.11 points, -0.34%) with liquidity equal to the 20-session average. The market had 169 stocks increasing and 150 stocks decreasing. The group of stocks contributing the most to the market's increase were SHB, VPB, BCM while VIC VHM VCB contributed to the market's decrease. Foreign investors net sold about 1,919 billion, mainly focusing on CTG, VPB, FPT.

Trading Strategy: During technical correction sessions around 1,400-1,450 points, investors can consider gradually disbursing funds into stocks with good business results that stand to benefit from the expectation of a market upgrade. If institutional cash flow does not reappear in the 1,400-1,450 point range, investors can reduce their stock proportion to manage risk.