Vietnam Insight

Attention remains on the Fed’s forward guidance. US stock futures held near flat levels on Wednesday as investors awaited the Federal Reserve’s closely-watched policy decision. The central bank is widely expected to deliver a 25 basis point rate cut in response to signs of a cooling labor market and subdued inflation, though attention remains on the Fed’s forward guidance. On Tuesday, the Dow slipped 0.27%, the S&P 500 fell 0.13% and the Nasdaq Composite eased 0.07%. Six of the 11 S&P sectors closed lower, with utilities, real estate and technology leading declines. Notable losses were seen from megacap tech names such as Nvidia (-1.6%), Broadcom (-1.1%) and Microsoft (-1.2%). Meanwhile, investors tracked US-China developments, with progress on trade and a new TikTok framework lifting sentiment and boosting shares of Oracle.

The uptrend continues. VNINDEX closed at 1,680.90 (-4.00 points, -0.24%) with liquidity below the 20-session average. The market recorded 114 gainers and 210 decliners. The stocks contributing most to the market’s upward momentum were HVN, MBB, CTG, while VIC, VHM, HPG weighed on the downside. Foreign investors recorded a net buy of more than VND 55 billion, focusing on VIX, VHN, VNM.

Trading Strategy: Prioritize a hold strategy while being ready to sell when targets are achieved. For short-term traders: if the market corrects toward 1,600 and bounces, consider deploying a small allocation. If the index retreats to the 1,540 region, this would present a clearer medium-term buying opportunity. Investors can allocate more aggressively, focusing on stocks with strong drivers such as beneficiaries of the upgrade, companies with robust earnings growth, or those with valuations below the market average.