Vietnam Insight

Expectations of a Fed rate cut. US stock futures were little changed on Wednesday as investors awaited the Federal Reserve’s policy decision, with markets widely expecting a quarter-point rate cut. Traders will closely watch Chair Jerome Powell’s remarks for clues on the pace of further easing. Attention also turned to earnings from “Magnificent Seven” giants, with Alphabet, Meta and Microsoft set to report after Wednesday’s close, followed by Apple and Amazon on Thursday. Meanwhile, Nvidia shares rose 1.7% in extended trading, adding to Tuesday’s record-setting rally, after unveiling partnerships with the US government, Oracle, Uber and Eli Lilly, among others. In regular trading on Tuesday, the Dow rose 0.34%, the S&P 500 gained 0.23% and the Nasdaq Composite climbed 0.8%. All three benchmarks reached new all-time highs as an expected Fed rate cut, easing US-China trade tensions and upbeat corporate updates particularly in the tech sector boosted sentiment.

Technical rebound – consolidation phase. The VNINDEX closed at 1,680.5 (+27.96 points, +1.69%) with liquidity lower than the 20-session average. The market had 219 gaining codes and 94 declining codes. The stock groups contributing most significantly to the market's rally were VIC, VPB, and VJC; contributing to the market's decline were TCX, VPL, and BSR. Foreign investors were net buyers at 1,536 billion VND.

Trading Strategy: Investors may consider short-term trades within the 1,600–1,700 range. If the market successfully retests the 1,600 level, investors can also deploy capital for medium- to long-term positions, focusing on stocks with strong momentum — such as those benefiting from an upgrade in market classification, robust earnings growth, or valuations that remain lower than the overall market average.