Vietnam Insight

The Fed is expected to keep interest rates unchanged. US stock futures were little changed on Wednesday as investors positioned ahead of the Federal Reserve’s latest policy decision and a heavy slate of earnings from major technology firms. The Fed is widely expected to keep interest rates unchanged, with markets instead looking for guidance on the timing of the next rate cut amid expectations for two quarter point reductions before year end. On the corporate front, earnings are due after the close on Wednesday from Tesla, Microsoft and Meta Platforms, followed by Apple on Thursday, setting the tone for broader market sentiment. In regular trading on Tuesday, the S&P 500 rose 0.41% to close at a fresh all time high, while the Nasdaq Composite gained 0.91% as technology stocks advanced. By contrast, the Dow fell 0.83%, weighed down by UnitedHealth, which plunged 19.6% after issuing a profit warning linked to proposed Medicare Advantage reimbursement changes. Boeing also declined 1.6% after posting underwhelming results.

Correction in an uptrend. The VNINDEX closed at 1,830.50 (-13.22 points, -0.72%) with trading volume falling below the average of the last 20 sessions. The market saw 171 gainers and 138 losers. The stocks that significantly impacted the index's correction were VIC, VHM, and TCB; the stocks that helped curb the index's decline were GAS, VCB, and FPT. Foreign investors net sold VND 106 billion, focusing on VIC, VCB, and VNM.

Trading Strategy: Market corrections often open up opportunities for investors to increase their positions. We recommend focusing on stocks with strong financial results and positive growth prospects for 2026 that have not yet seen a corresponding price increase, such as those in the banking, retail, and securities sectors..

Buy Recommendation: TV2