Vietnam Insight

Wall street falls as economic and trade worries mount. US equities ended lower on Tuesday as investors grappled with downbeat economic data, rising trade tensions, and mixed corporate earnings. The S&P 500 dropped 0.5%, the Nasdaq slid 0.7%, and the Dow slipped by 62 points, following Monday’s sharp rebound from Friday’s losses tied to a disappointing jobs report. Concerns about stagflation resurfaced after the ISM Services index showed activity had stalled in July. eanwhile, President Trump’s threats of steep tariffs—up to 250% on pharmaceutical imports—alongside potential levies on semiconductors, added to market unease amid ongoing trade uncertainty with India, Switzerland, and China.

Correction pressure persist. VNINDEX closed at 1,547.15 (+18.96 points, +1.24%) with liquidity increasing sharply compared to the 20-session average. The market had 118 stocks increasing and 221 stocks decreasing. The group of stocks contributing the most to the market's increase were VIC, VHM, TCB while BCM SSB VPL contributed to the market's decrease. Foreign investors net sold about 2,523 billion, of which VIC contributed 2,890 billion VND of net selling (followed by SHB with nearly 226 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.