Vietnam Insight

Focused on a busy U.S. economic data release calendar this week. US stock futures stabilized on Monday following a mixed week on Wall Street, as investors rotated out of richly valued technology stocks into more reasonably priced segments of the market. At the same time, traders are reassessing the outlook for additional Federal Reserve interest rate cuts next year. Last week, the Dow rose 1.05% to fresh all-time highs, while the S&P 500 and Nasdaq Composite fell 0.63% and 2.03%, respectively. Among individual stocks, Oracle slid 12.7% and Broadcom dropped 7.8% last week as concerns grew over the profitability and sustainability of artificial intelligence related investments. Looking ahead, investors will focus on a busy US economic calendar this week, including nonfarm payrolls, retail sales, and inflation data. On the corporate front, earnings are due from several major companies, including Micron Technology, Nike, FedEx, CarMax, and Carnival.

The correction index is below the psychological support level of 1,700. The VNINDEX closed at 1,646.59 (down 52.01 points, or -3.06%) with liquidity higher than the 20-session average. The market saw 40 gainers and 296 losers. The stocks that contributed the most to the index's gain were PNJ, BMP, and QCG; the stocks that hindered the market were VIC, VHM, and VPB. Foreign investors were net sellers with a value of nearly 570 billion VND.

Trading Strategy: The sharp decline in the VIC group dragged the index lower, but several sectors are showing signs of strong price support. Notably, banking, utilities, basic resources, and financial services; investors may continue monitoring these groups to prepare an appropriate deployment strategy.