Vietnam Insight

US stocks continue to hit record highs. US stock futures inched up on Tuesday after Wall Street rallied to new record highs in the previous session, as investors awaited Big Tech earnings, a Federal Reserve policy decision, and developments on a potential US-China trade deal. On Monday, the Dow rose 0.71%, while the S&P 500 and Nasdaq Composite advanced 1.23% and 1.86%, respectively. Gains came after the US and China agreed on a framework for a trade deal to be finalized by Presidents Trump and Xi this week, covering rare earth export controls, soybean purchases, and TikTok. Meanwhile, the Fed is widely expected to cut interest rates by 25 basis points on Wednesday, with markets watching for hints of another reduction in December. On the corporate side, Amazon said it will begin layoffs on Tuesday, marking the largest job cuts in the company’s history. Highly-anticipated earnings reports this week include Apple, Amazon, Alphabet, Meta and Microsoft.

Technical rebound – consolidation phase. VNINDEX closed at 1,652.54 (-30.64 points, -1.82%) with liquidity lower than the 20-session average. The market had 143 advancing codes and 178 declining codes. The stock groups contributing most to the market's rally were GVR, POW, BVH; those contributing to the market's decline were VHM, VIC, and TCB. Foreign investors strongly net-sold at 1,106 billion VND

Trading Strategy: Short-term investors should refrain from making new purchases for now and wait for the market to form a price base. If the market successfully retests the 1,600-point level, investors may consider allocating capital for medium- to long-term positions, focusing on stocks with strong catalysts — such as those benefiting from market reclassification, robust earnings growth, or valuations that remain lower than the broader market

Buy Recommendation: CTD