Vietnam Insight

Awaiting the upcoming CPI data. US stock futures were little changed on Tuesday after major indexes began the week on a strong footing, with the Dow notching a fresh record high. In Monday’s cash session, the Dow edged up 0.04%, the S&P 500 advanced 0.47% and the Nasdaq Composite jumped 0.9%, marking a second consecutive day of gains across all three benchmarks. Technology stocks led the advance, extending Friday’s rebound after recent selling driven by concerns over elevated artificial intelligence spending and potential disruption to traditional software business models. Megacap tech outperformed, with Nvidia up 2.5%, Tesla 1.5%, Microsoft 3.1%, Broadcom 3.3% and Meta Platforms 2.4%. Oracle surged 9.6% following an analyst upgrade linked to stronger AI-related demand. Looking ahead, investors are awaiting the delayed January employment report and upcoming CPI data, which are expected to further shape expectations around the pace of economic cooling and the timing of potential policy easing.

Back to the trading zone 1,700 – 1,800. VNINDEX closed at 1,754.82 (-0.67 points, -0.04%) with liquidity hovering at 50% below the 20-day average. The market saw 151 gainers against 175 losers. The primary stocks weighing on the index's correction were VHM, BID, and GEE, while FPT, VIC, and MBB provided the strongest upward support. Foreign investors remained net sellers with a total outflow of 250 billion VND, focusing their selling pressure on VCB, VIC, and HPG.

Trading Strategy: Short-term investors should prioritize holding existing positions and be ready to sell according to plan. Temporarily refrain from new purchases and strictly limit margin usage as liquidity tends to decline ahead of the Lunar New Year. For medium-term investors, the power sector continues to show good momentum, while the real estate sector is trading at relatively low price levels.