Vietnam Insight

US stocks rose on expectations that the Fed will pause rate hikes. US stock futures were little changed on Friday as investors cautiously awaited the September jobs report, which could provide fresh clues about the health of the labor market and shape expectations for the Federal Reserve’s monetary policy. However, markets will require a higher threshold for a strong jobs report to support expectations of a Fed rate hike this month, with traders currently pricing in around a 75% probability that interest rates will remain unchanged. Investors also monitored geopolitical developments as the US considers deploying an additional aircraft carrier and more troops to the Middle East, potentially escalating the conflict with Iran and causing further disruptions to regional energy supplies. On the corporate front, Anthropic was reportedly exploring plans for an IPO as early as mid-November. In regular Thursday trading, the S&P 500 rose 0.19%, while both the Dow Jones and Nasdaq Composite edged up 0.04% as US Treasury yields retreated from multi-decade highs.

Shorterm decrease. The VN-Index ended the trading session at 1,749.3 points (-19.11 points, -1.09%), with low liquidity. There were 110 advancers and 177 decliners during the session. VIC and STB were the main detractors from the index, while TCB and MSN made positive contributions. Foreign investors recorded a modest net sell of around VND63 billion.

Trading Strategy: Investors may consider accumulating large-cap stocks at lower levels, particularly those expected to attract upgrade-related capital inflows, with attractive valuations and strong fundamentals (FA). However, investors should remain cautious and avoid chasing stocks at high prices, as the primary trend remains range-bound.

Sell Recommendation: VCB

Current hodling portfolio: VCB; Watchlist: REE, TCH BVH, GAS; High risk stocks to avoid: PNJ NVL