Vietnam Insight

Expectations for Fed rate cuts narrowed due to better-than-expected jobs data. US stock futures were little changed on Thursday as investors assessed another wave of corporate earnings. In extended trading, AppLovin slid 6% despite posting stronger-than-expected quarterly results. Cisco Systems fell 7% after reporting weaker gross margins, while McDonald’s edged lower even as it delivered an earnings beat. In regular trading on Wednesday, the S&P 500 finished flat, while the Dow and Nasdaq Composite declined 0.13% and 0.16%, respectively. The major averages initially rallied following better-than-expected January jobs data but later reversed course amid pressure in software and other rate-sensitive stocks. Nonfarm payrolls rose by 130,000, comfortably above the 55,000 consensus forecast, prompting a rise in Treasury yields as traders pared back expectations for Federal Reserve rate cuts. Despite the late-session pullback, market breadth remained constructive, with eight of the 11 S&P sectors closing higher, led by energy, consumer staples and materials.

Back to the trading zone 1,700 – 1,800. VN-Index closed at 1,796.85 points, gaining 42.82 points (2.44%), with liquidity showing improvement compared to recent sessions. Market breadth was positive, recording 273 gainers against 67 losers. While GAS, GVR, and PLX exerted the most downward pressure on the index, VIC, VPB, and VCB served as the primary drivers for the day's gains. Foreign investors remained net buyers to the tune of 2,086 billion VND, with MBB leading the inflows at 1,406 billion VND.

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.