Vietnam Insight

US stocks rise amid AI gains, shutdown concerns. US stocks closed higher on Monday as investors tried to stabilize the market following last week’s losses driven by cracks in AI-related trading and concerns over new tariffs. The S&P 500 rose 0.2%, the Nasdaq 100 advanced 0.4%, and the Dow Jones added 69 points, supported by gains in tech and AI-focused companies such as Nvidia (+2.1%), AMD (+1.2%), and Micron Technology (+4.2%). Video game company Electronic Arts jumped 4.5% after announcing a $55 billion take-private deal, reflecting broader M&A momentum that has topped $1 trillion this year. Market participants are closely watching the risk of a US government shutdown, which could delay key economic releases, including Friday’s nonfarm payroll report, raising uncertainty around the Federal Reserve’s rate-cut decisions.

Sideway waiting for further news. VNINDEX closed at 1,666.48 (+5.78 points, +0.35%) with liquidity lower than the 20-session average. The market had 86 gainers and 233 losers. The stocks that contributed the most to the market's increase were VIC, VHM, VPB while HVN, FPT, VCB contributed to the market's decline. Foreign investors net sold more than VND749 billion, concentrated in SSI and DIG.

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.