Vietnam Insight

Rising uncertainty over the timing of interest rate cuts. US stock futures were flat on Monday as investors weighed the economic fallout from President Donald Trump’s sweeping reciprocal tariffs. Last week, the Dow fell 2.92%, the S&P 500 lost 2.36%, and the Nasdaq dropped 2.17%, snapping a record-setting rally. The selloff followed Trump’s executive order imposing reciprocal tariffs of 10% to 41% on dozens of trading partners. Sentiment was further hit by a weaker-than-expected July jobs report, which showed payrolls rising by just 73,000 and downward revisions to previous months, pointing to deeper labor market weakness. Markets now face added uncertainty over the timing of the next Federal Reserve rate cut, as August, a historically weak month for stocks, gets underway.

Correction pressure persist. VNINDEX closed at 1,495.21 (-7.31 points, -0.49%) with liquidity falling below the 20-session average. The market had 141 gainers and 180 losers. The group of stocks that contributed the most to the market's growth were FPT, PNJ, HDB while CTG VIC BID contributed to the market's decline. Foreign investors net sold about 2,296 billion, mainly focusing on SSI, CTG, 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.