Vietnam Insight

The Senate has yet to reach a funding agreement. US stock futures inched up on Friday after the S&P 500 and Nasdaq Composite retreated from record highs in the prior session as investors re-evaluated the AI-driven rally, interest rate cut prospects, and the prolonged government shutdown. On Thursday, the S&P 500 and Nasdaq Composite fell 0.28% and 0.08%, respectively, while the Dow declined 0.52%. The shutdown entered its ninth day as the Senate failed to reach a funding agreement, delaying key economic data releases that could guide the Federal Reserve’s policy outlook. Attention now turns to third-quarter earnings for clues on the economy and AI momentum. Major banks such as Citigroup and JPMorgan are set to report next week. Meanwhile, Delta Air Lines and PepsiCo jumped over 4% on Thursday following upbeat quarterly results, signaling steady consumer demand.

Breakout. VNINDEX closed at 1,716.47 (+18.64 points, +1.10%) with liquidity continuing to improve above the 20-session average. Market breadth was fairly even between gainers and losers. There were 157 gainers and 146 losers. The stocks that contributed the most to the market's uptrend were VHM, CTG, VPB; those that contributed to the market's downtrend were VCB, LPB, and HPG. Foreign investors returned to net sell strongly with VND1,605 billion.

Trading Strategy: Prioritize a holding strategy and limit new purchases during breakouts. In a positive scenario, if the VN-Index successfully tests and holds the 1,700 level, investors can consider increasing exposure during subsequent pullbacks to ride the upcoming uptrend.If the market retreats to around the 1,600 zone, clearer buying opportunities will emerge — investors may focus allocations on stocks with strong catalysts such as re-rating benefits, robust earnings growth, or valuations that remain lower than the broader market.