Vietnam Insight

Wall Street kicked off the new week on a positive note. US stock futures edged lower on Tuesday as the government shutdown stretched into a seventh day after competing Democrat and Republican funding proposals failed in the Senate. Democratic leader Chuck Schumer also dismissed President Donald Trump’s claim that talks with Democrats were ongoing. Still, Wall Street started the week on a strong footing, with the S&P 500 and Nasdaq Composite rising 0.36% and 0.71% to new record highs, while the Dow slipped 0.14%, ending a six-day winning streak. Gains were driven by AI-related deal activity and expectations of a Federal Reserve rate cut. AMD soared 23.7% after unveiling a multiyear agreement to supply AI chips to OpenAI, which could acquire up to a 10% stake in the company. Other major tech stocks also climbed, including Tesla (5.5%), Microsoft (2.2%), and Palantir Technologies (3.7%).

Testing the peak. VNINDEX closed at 1,695.50 (+49.68 points, +3.02%) with improved liquidity in a strong uptrend session. The market had 259 gainers and 68 losers. The group of stocks contributing the most to the market's uptrend was VCB VPB VIC, while those contributing to the market's downtrend were LPB, STG, PGV. Foreign investors continued to net sell more than VND 1,856 billion.

Trading Strategy: Prioritize the strategy of holding and being ready to sell when the target is reached. In the positive case, VN-Index successfully tests and maintains 1,700, investors can increase the proportion for the upcoming uptrend. In case of not successfully breaking through 1,700, the market returns to the 1,500-1,540 point range, there will be a clearer buying opportunity for the medium-term position, investors can disburse more confidently, focusing on groups of stocks with many driving forces such as benefiting from upgrading, strong business results; or lower valuation level compared to the general market.