Vietnam Insight

Jobless claims rose, markets priced in Fed rate cut expectations. US stock futures were flat on Friday after the major indexes surged to fresh records in the prior session, fueled by mounting expectations of deeper Federal Reserve rate cuts. On Thursday, the Dow jumped 1.36%, the S&P 500 gained 0.85% and the Nasdaq Composite advanced 0.72%, with all three notching new all-time highs. The August CPI report showed consumer prices rising 0.4% on the month, topping forecasts, though the annual rate held steady at 2.9% as expected. Jobless claims climbed by 27K to 263K, the highest since 2021, reinforcing signs of labor market weakness. Markets have fully priced in a quarter-point cut at the Fed’s September 17 meeting, with the odds of a larger half-point reduction edging higher. 

The upward trend is stalling. VN-Index closed at 1,657.75, up 14.49 points (0.88%), with trading volume below the 20-day average. There were 163 gainers and 152 losers. The stocks that contributed most to the market's gain were VIC, VHM, and LPB, while TCB, MBB, and ACB were the biggest drags. Foreign investors were net sellers of over 1,063 billion VND, with a focus on SSI and MWG

Trading Strategy: Prioritize a holding strategy and be ready to sell once targets are met. For short-term traders, if the market corrects to around 1,600 points and rebounds, a small allocation can be considered. If the market returns to the 1,540-point area, there will be a clearer buying opportunity for medium-term positions. In addition, investors should maintain a balanced ratio of stocks and cash in their portfolios.