Vietnam Insight

Earnings season supports the market. S&P 500 and Nasdaq 100 futures edged higher on Tuesday, supported by upbeat earnings from major technology companies that lifted market sentiment. In extended trading, data analytics firm Palantir Technologies jumped about 6% after beating expectations on both revenue and earnings, while robotics stock Teradyne surged 23% after issuing strong guidance for the current quarter. By contrast, NXP Semiconductor slid 5% following weak Q1 gross margin guidance. Investors now turn to a busy earnings slate later Tuesday, with results due from AMD, PepsiCo, Pfizer, PayPal, and Chipotle, among others. In regular trading on Monday, the Dow climbed 1.05%, the S&P 500 gained 0.54%, and the Nasdaq Composite advanced 0.56%. Technology and AI infrastructure stocks led the rally, including Apple (4.1%), Micron (5.5%), and Sandisk (15.4%). Meanwhile, Nvidia fell 2.9% as uncertainty lingered over its stalled $100 billion OpenAI investment.

Correction in an uptrend. The VNINDEX closed at 1,806.50 (-22.54 points, -1.23%) with trading volume below the average of the last 20 sessions. The market saw 128 gainers and 210 losers. The stocks that significantly impacted the index's correction were VIC, VHM, and VPL (VIC alone dragged the VN-Index down by 26 points); the stocks that helped the index rise were VCB, GVR, and BID. Foreign investors heavily sold net 2,461 billion VND, focusing on VIC, VHM, VCB, and VRE.

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: POW