Vietnam Insight

Initial jobless claims declined. US stock indices closed higher on a shortened Wednesday session, maintaining the strong momentum from the week amid expectations that the current economic backdrop continues to favor earnings prospects for the upcoming year. The S&P 500 gained 0.4% and the Dow jumped 0.7%, both at record highs, while the Nasdaq 100 gained 0.3%. Yesterday's third-quarter GDP print was sharply above expectations for an annualized expansion of 4.3%, reflecting robust private consumption and limiting concerns that tariffs hampered spending or triggered a bounce for inflation. Meanwhile, initial jobless claims fell and outstanding claims jumped, extending the view of low hiring and low firing in a fragmented labor market. Tech giants underperformed but loosely held the traction from this week despite lingering concerns of exaggerated of AI capital expenditure. Still, Intel fell 0.5% on reports that Nvidia halted a test that would use Intel equipment for advanced chips.

Approaching all-time highs. The VNINDEX closed at 1,782.82 (+10.67 points, +0.60%) with higher-than-average trading volume over the past 20 sessions. The market saw 144 gainers and 169 losers. The stocks contributing most to the index's rise were VHM, STB, and VPB; the stocks hindering the market were VJC, VNM, and VPL. Foreign investors net bought VND 1,081 billion, focusing on STB (VND 222 billion) and MBB (VND 145 billion).

Trading Strategy: Investors are watching stocks that have held their value well during the correction of the VIC group. If the market shows signs of rebounding near the 1,600 level, it could present an opportunity to initiate new purchases; however, caution is still advised as liquidity and market sentiment remain weak.