Vietnam Insight

U.S. stocks remain near record highs as investors await employment data. US stock futures moved modestly higher on Monday as June trading got underway, with the major indexes remaining near record levels. Wall Street wrapped up a strong May performance, with the Dow advancing 2.79%, while the S&P 500 and Nasdaq Composite climbed 5.15% and 8.36%, respectively. Technology shares continued to drive gains, supported by persistent enthusiasm surrounding artificial intelligence-related investments. Market sentiment also benefited from a solid earnings season, with roughly 85% of S&P 500 companies reporting first-quarter results above expectations. Meanwhile, the US and Iran agreed to a 60-day memorandum of understanding to maintain the ceasefire, although negotiations on a broader and more permanent peace agreement are still ongoing. Investors are now focused on the upcoming nonfarm payrolls report, which could provide important clues about labor market conditions and the future direction of Federal Reserve policy.

Accumulating ahead of a breakout. The VN-Index closed the week at 1,863.4 points (-13.6 points; -0.73%) with declining liquidity. The price range was narrow due to a lack of leading stocks. The VIN group of stocks showed signs of accumulation and slight decline, but capital flow has not yet spread to other sectors. The main structure of the market remains in a sideways – short-term downtrend state.

Trading Strategy: Investors may focus on stocks with sideways consolidation patterns and strong earnings growth rather than concentrating solely on VN-Index fluctuations for medium-term positioning. In the short term, opportunities may emerge in heavily sold off stocks showing signs of recovery, such as insurance, technology, and real estate sectors.

Buy Recommendation: PDR; Current trading portfolio: VGC, PC1; Watchlist: HPG, KDH, MBB, CTD