Vietnam Insight

The Fed kept interest rates unchanged as expected. US stock futures fell slightly on Thursday as investors digested earnings from megacap tech firms alongside a widely expected decision by the Fed to hold rates steady. Dow futures slipped 0.3%, S&P 500 futures lost 0.2% and Nasdaq 100 futures shed 0.1%. In after-hours trading, Meta Platforms surged nearly 8% after delivering a strong Q1 sales outlook, while Tesla added about 2% on better-than-expected Q4 results. By contrast, Microsoft slid 7% after reporting slowing cloud growth and issuing softer operating margin guidance for the current quarter. Market participants now turn their attention to upcoming earnings from Apple later on Thursday, as well as reports from Visa, Mastercard, Caterpillar, and Lockheed Martin. During regular trading on Wednesday, US equities finished mixed, with the Dow edging up 0.02% while the S&P 500 slipped 0.01%. The Nasdaq Composite gained 0.17%, supported by strength in semiconductor stocks, including Nvidia (+1.6%), Micron (+6.1%), and Intel (+11%). The Fed left the federal funds rate unchanged at the 3.5%–3.75% target range in its January 2026 meeting, in line with expectations, after three consecutive rate cuts last year that pushed borrowing costs to their lowest level since 2022.

Correction in an uptrend. The VNINDEX closed at 1,802.91 (-27.59 points, -1.51%) with trading volume falling below the average of the last 20 sessions. The market saw 140 gainers and 172 losers. The stocks that significantly impacted the index's correction were VIC, VHM, and VCB; the stocks that helped curb the index's decline were GAS, MSN, and FPT. Foreign investors net sold VND 1,777 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: MSN