Vietnam Insight

The Fed cut 25 basis points, signaled two more reductions this year. US stock futures advanced on Thursday as investors digested the Federal Reserve’s latest policy decision. The Fed delivered a widely expected 25 basis point rate cut on Wednesday, while signaling two more reductions this year but only one in 2026, countering market bets on two or three cuts next year. Chair Jerome Powell struck a cautious tone, framing the move as “risk management.” Traders now turn to upcoming inflation and labor market data for clues on the future policy path. During Wednesday’s session, the Dow gained 0.57%, while the S&P 500 slipped 0.1% and the Nasdaq lost 0.33%. Sector-wise, financials, consumer staples and materials outperformed, whereas technology, industrials and consumer discretionary lagged. 

Stagnant around the peak. VNINDEX closed at 1,670.97 (-9.93 points, -0.59%) with liquidity lower than the 20-session average. The market had 119 gainers and 201 losers. The stocks that contributed the most to the market's increase were VIC, FPT, GAS while BID, VCB, CTG contributed to the market's decline. Foreign investors net sold more than VND122 billion, concentrated in MSN, VPB, VHM.

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.