Vietnam Insight

Stable market movements. US stock futures ticked higher on Tuesday as investors digested the latest round of corporate earnings. In after-hours trading, Palantir surged over 4% after the AI software company beat second-quarter earnings expectations and raised its outlook on robust demand for its AI Platform. In contrast, Hims & Hers Health sank roughly 13% after missing Q2 revenue estimates. Attention now turns to earnings results due Tuesday from major names including AMD, Pfizer, Snap, Rivian, and Yum! Brands. On Monday, the Dow rose 1.34%, the S&P 500 added 1.47%, and the Nasdaq Composite jumped 1.95%, with Wall Street rebounding from last week’s pullback. The rally was driven by renewed optimism for a potential Fed rate cut in September following a weak July jobs report and downward revisions to previous months’ data.

Correction pressure persist. VNINDEX closed at 1,528.19 (+32.98 points, +2.21%) with liquidity lower than the 20-session average. The market had 242 gainers and 89 losers. The group of stocks that contributed the most to the market's increase were VIC, VHM, TCB while PNJ GEE FPT contributed to the market's decrease. Foreign investors net sold about 10,256 billion, of which VIC contributed 9,994 billion VND of net selling (followed by SSI with nearly 400 billion).

Trading Strategy: Investors should limit disbursement in recovery sessions with low liquidity and wait for clearer confirmation of the uptrend. In technical correction sessions around 1,400-1,450 points, investors can consider partial disbursement in stocks with good business results and benefiting from market upgrade expectations. In case institutional cash flow does not reappear in the 1,400-1,450 point area, investors can reduce the proportion of stocks to manage risks.