Vietnam Insight

Shifting focus to the FOMC meeting. US stock futures climbed on Thursday as Nvidia’s quarterly beat and upbeat outlook reignited confidence in the artificial intelligence trade. Nasdaq 100 futures jumped 1.4%, while the S&P 500 and Dow rose 0.9% and 0.3%, respectively. Nvidia shares surged more than 5% in extended trading after the company reported stronger earnings and revenue, alongside a better-than-expected fourth quarter sales forecast. CEO Jensen Huang said demand for its Blackwell chips is “off the charts.” Other chipmakers and AI-linked names advanced as well, with AMD, Micron Technology, Broadcom and Palantir up 2.9% to 4.1%. During Wednesday’s session, the Dow added 0.1%, the S&P 500 gained 0.38% and the Nasdaq Composite climbed 0.59% as investors weighed mixed retail earnings and the latest FOMC minutes. Focus now turns to the delayed September jobs report for signals on labor market strength.

Return to the sideways range of 1,600-1,700. VNINDEX decreased slightly, closing at 1,649.00 (-10.92 points, -0.66%) with liquidity remaining lower than the 20-session average. The market had 84 gainers and 222 losers. The stocks that contributed the most to the index's increase were HDB, VIC and HPG; the stocks that hindered the market were GVR, VNM and BVH. Foreign investors net sold VND642 billion. The stocks that were net sold the most were DGC, VND, MWG. On the contrary, HPG and HDB 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.