Vietnam Insight

Caution is increasing. U.S. stock futures edged higher on Tuesday morning after Wall Street closed sharply lower Monday, as sentiment toward the AI trade deteriorated ahead of Nvidia’s earnings due Wednesday. The report will be scrutinized amid anxiety over stretched AI valuations, even as many expect the chipmaker to beat forecasts once again. Caution further deepened after filings showed Peter Thiel sold his near USD 100 million stake in Nvidia. Traders also awaited earnings from Target and Walmart, along with a batch of delayed U.S. data, including the September jobs report, ahead of the Fed’s next meeting. Fed Vice Chair Philip Jefferson flagged downside risks to the labor market and stressed a careful policy approach. In corporate news, Berkshire Hathaway acquired 17.9 million Alphabet shares in Q3 while trimming holdings in Bank of America and Apple. Meanwhile, Ford reached a deal with Amazon to sell certified used cars on the e-commerce giant’s platform, becoming the second major automaker to do so.

Return to the sideways range of 1,600-1,700. VNINDEX increased positively, closing at 1,654.42 (+18.96 points, +1.16%) with liquidity remaining lower than the 20-session average. The market was spread out with 227 stocks increasing and 86 stocks decreasing. The stocks contributing the most to the index's increase were VIC, VHM and HPG; the stocks hindering the market were VNM, GEE and BVH. Foreign investors net sold with a value of 911 billion VND. The stocks with the strongest net selling were STB, VHM, VRE (nearly 500 billion). On the contrary, HPG, FPT and VNM were net bought the most.

Trading Strategy: Trading-oriented investors can monitor the market's reaction around the 1,650-1,700 range. If the index does not drop out of the sideway channel during corrective sessions, this could be a good opportunity for this type of investor to re-enter the market. Medium- and long-term investors can begin partially disbursing capital into stocks with strong business results and attractive enough discounts, such as the banking, financial, and construction materials sectors.