Vietnam Insight

Reinforcing further signs that labor demand is cooling. S&P 500 and Nasdaq 100 futures rose on Thursday following two straight days of heavy selling in technology stocks, as dip buyers stepped in and as investors weighed the latest earnings results. In extended trading, Google-parent Alphabet slid more than 1% after flagging a sharp increase in AI spending this year, a move that nonetheless buoyed AI-linked names such as Nvidia (1.9%) and Broadcom (6.5%). In regular trading on Wednesday, the S&P 500 and Nasdaq Composite fell 0.51% and 1.51%, respectively, dragged down by losses in software stocks amid concerns that AI could disrupt the sector’s business models. By contrast, the Dow Jones rose 0.53% as investors rotated out of tech and into more reasonably valued sectors. Softer macro signals provided little support, with the ADP report showing private payroll growth slowed sharply to just 22K in January, reinforcing signs of cooling labor demand.

Correction in an uptrend. The VNINDEX closed at 1,791.40 (-21.97 points, -1.21%) with improved liquidity around the average of the last 20 sessions. The market saw 167 gainers and 155 losers. The stocks that significantly impacted the index's correction were VIC, VHM, and VCB (these three alone contributed nearly 22 points to the decline); the stocks that helped the index rise were HPG, MCH, and VPB. Foreign investors net sold 957 billion VND, focusing on FPT, VIC, and VHH. Meanwhile, they heavily bought HPG (948 billion VND).

Trading Strategy: Market adjustments present opportunities for investors to increase their positions. We recommend focusing on stocks with strong earnings results and positive growth prospects for 2026 that have not yet seen corresponding price appreciation, such as private banking, retail, securities, and steel.For sectors showing positive momentum, such as state-owned banks and industrial park real estate, investors should be selective and avoid "chasing" prices at current levels.