Vietnam Insight

US equities break 3-day losing streak. US stocks closed higher on Friday, as investors reacted positively to an inflation report that met expectations, while also factoring in President Trump’s new wave of tariffs and weakening consumer sentiment. The S&P 500 climbed 0.6%, the Nasdaq 100 gained 0.4% and the Dow Jones rose 300 points, all snapped 3-session losing streak. August’s PCE index, the Fed’s preferred inflation gauge, showed core inflation at 2.9% year-over-year, supporting expectations for two quarter-point rate cuts in upcoming meetings.

Sideway waiting for further news. For the entire week, the VN-Index closed the week at 1,660.7 points (+2.08 points, +0.1%), reclaiming the bullish trend channel with the market's focus centered on the real estate and public investment groups. Currently, the index continues to fluctuate within the 1600 – 1700 point range and is heading towards the upper bound of 1700 points with liquidity remaining low and no sign of a sell-off yet. Investors need to manage risk if the index loses the bullish trend channel accompanied by high volume (large liquidity).

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.