Vietnam Insight

Rate cuts remain out of reach. US stock futures held steady Thursday following a tech-led selloff on Wall Street, as concerns grew over stretched valuations and the durability of the AI-driven rally. On Wednesday, the Nasdaq Composite slid as much as 1.92% before paring losses to close 0.67% lower, while the S&P 500 slipped 0.24%. Megacap tech stocks weighed on the market, with declines in Palantir (-1.1%), Apple (-2%), Amazon (-1.8%), Broadcom (-2%), and Intel (-7%). Minutes from the Federal Reserve’s July meeting showed most officials favored holding rates steady, though two dissented over inflation and labor market risks. Investors now turn to Fed Chair Jerome Powell’s speech at the Jackson Hole symposium for clues on potential rate cuts. Upcoming catalysts also include weekly jobless claims, existing home sales, and earnings reports from Walmart and Workday.

Maintain the uptrend. The VN-Index closed at 1,664.3 (+10.16 points, +0.61%) with high liquidity. The market recorded 83 gainers and 259 decliners. The stocks contributing the most to the market’s advance were VIC and VHM, while VCB and HPG weighed on the index. Foreign investors net sold around VND 405 billion, mainly focused on VPB.

Trading Strategy: The priority strategy is to hold positions and be ready to sell when targets are reached. If the market corrects to the 1,500–1,570 range, investors may consider partial disbursements into stocks with strong earnings and those benefiting from the market-upgrade expectation. However, if institutional inflows do not return at the 1,500–1,570 range, investors should reduce equity exposure to manage risk. We still expect the industrial real estate and retail sectors to offer good buying opportunities as their prices have not risen too much compared to the broader market, while a corrective phase is expected to open new buying opportunities in the securities sector