Vietnam Insight

The U.S. government shuts down for the first time in six years. US stock futures were little changed on Thursday after the S&P 500 set fresh all-time highs in the prior session, with investors largely dismissing concerns over the ongoing government shutdown. On Wednesday, the S&P 500 rose 0.34%, while the Dow added 0.09% and the Nasdaq Composite gained 0.42%. The deadlock stemmed from Democrats’ insistence on tying the measure to extended health care tax credits for millions of Americans. Investors also looked past weaker private payrolls data, with the ADP report showing a drop of 32,000 jobs in September. Meanwhile, the Labor Department confirmed it will not release the September nonfarm payrolls report this week because of the shutdown. In corporate news, pharmaceutical stocks such as Pfizer, Biogen, and Merck extended gains in after-hours trading after the Trump administration announced a deal with Pfizer under its “most-favored-nation” drug pricing initiative.

Sideway waiting for further news. VN-Index closed at 1,665.05 (+3.35 points, +0.20%) with liquidity remaining low. The market recorded 175 gainers and 139 decliners. The stocks contributing most to the market’s rise were STB, TCB, and LPB, while the main drag came from VIC, VHM, and VPB. Foreign investors continued strong net selling of more than VND 1,651 billion.

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.