Vietnam Insight

US equities muted after hot PPI. US stocks closed mostly on Thursday amid hotter-than-expected wholesale inflation data curbed optimism for a large Federal Reserve rate cut in September. The S&P 500 booked marginal gains, rosing for third day, while the Dow and and Nasdaq were muted. July’s Producer Price Index jumped 0.9% month-over-month—the largest increase in three years—and rose 3.3% year-over-year, well above the 0.2% forecast. Despite the inflation surprise, markets still priced in an 85–91% likelihood of a September rate cut, though expectations for a 50-basis-point move disappeared. 

Waiting for trend confirmation. VNINDEX closed at 1,640.69 (+29.09 points, +1.81%) with liquidity higher than the 20-session average. The market had 156 stocks increasing and 170 stocks decreasing. The group of stocks contributing the most to the market's increase were VCB, VPB, MBB while FPT GVR and MSN contributed to the market's decrease. Foreign investors net sold about 2,366 billion, focusing on HPG and FPT.

Trading Strategy: In technical correction sessions around 1,510-1,550 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 1,450-1,510 point area, investors can reduce the proportion of stocks to manage risks.