Vietnam Insight

US stocks rebound. US stock futures were little changed on Wednesday after the major averages climbed for the third consecutive session on renewed AI optimism and bets for a Federal Reserve interest rate cut. In regular trading on Tuesday, the Dow jumped 1.43%, the S&P 500 climbed 0.91% and the Nasdaq Composite added 0.67%. Alphabet rose 1.6% to a fresh record high amid reports that Meta is considering a multibillion dollar deal for Google’s AI chips. Meanwhile, Nvidia fell 2.6% and is down about 15% month to date, putting it on track for its weakest month since September 2022. Investors also weighed mixed US data, with retail sales missing forecasts and the ADP report showing average weekly private payroll losses of 13,500 in the four weeks through November 8, while producer prices firmed in September. Markets continue to price in roughly an 85% chance of a 25 bps Fed cut next month.

Return to the sideways range of 1,600-1,700. VNINDEX decreased slightly, closing at 1,660.36 (-7.62 points, -0.46%) with liquidity around the average of the last 20 sessions. The market had 75 stocks increasing and 248 stocks decreasing. The stocks contributing the most to the index's increase were VIC, VJC and VPL; the stocks hindering the market were VPB, VCB and BID. Foreign investors net sold VND356 billion. SSI and VIC were the biggest net sellers.

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.