Vietnam Insight

US tech stocks continued to decline. US stock futures steadied on Friday after a dramatic reversal in the previous session as AI jitters persisted, while solid jobs data reinforced expectations that the Federal Reserve will hold off on cutting interest rates in December. Stocks opened sharply higher on Thursday after Nvidia’s strong earnings revived confidence in the AI trade, but sentiment shifted later in the session. The Dow fell 0.84%, the S&P 500 dropped 1.56% and the Nasdaq Composite slid 2.15%. Major tech names recorded sharp losses as concerns about an AI bubble continued, with Nvidia, AMD, Palantir, Micron Technology and Oracle declining between 3.2% and 10.9%. Meanwhile, delayed employment data from the BLS, expected to be the final release before the December FOMC meeting, showed stronger than expected job growth in September.

Return to the sideways range of 1,600-1,700. VNINDEX decreased slightly, closing at 1,655.99 (+6.99 points, +0.42%) with liquidity remaining lower than the 20-session average. The market had 120 gainers and 179 losers. The stocks that contributed the most to the index's increase were VIC, VJC and VHM; the stocks that hindered the market were HPG, MWG and TCB. Foreign investors net bought VND293 billion. VPB and SSI were the biggest net buyers

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 (which is currently showing these signs), 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.