Vietnam Insight

US stock futures stabilize after tech-led rout. US stock futures were little changed on Friday following a sharp decline in technology shares during the previous session, as growing concerns over the sustainability of artificial intelligence investments weighed on sentiment. During Thursday’s regular session, the Nasdaq Composite and S&P 500 fell 2.6% and 1.21%, respectively, while the Dow edged up 0.02%. Major laggards included memory chipmakers Micron (-6.3%) and SanDisk (-8.5%), semiconductor giants Nvidia (-4.4%) and AMD (-8.1%), as well as Elon Musk’s companies SpaceX (-9.1%) and Tesla (-3.1%). The selloff followed Meta Platforms’ (-7%) plans to increase capital expenditure, reigniting concerns that technology companies may take on additional debt to fund their AI infrastructure expansion. Meanwhile, escalating tensions in the Middle East added further pressure on equities, prompting investors to seek the relative safety of bonds. Japan’s Nikkei 225 Index dropped 2.65% to 62,908 on Thursday, closing at its lowest level in nearly three months as renewed selling pressure hit technology and artificial intelligence stocks. European stocks fell sharply on Thursday, with the Stoxx 50 dropping around 2% to a more than four-month low and the broader Stoxx 600 losing 1% to a one-week low. Crude oil held around $99 per barrel on Friday, trading near its highest level in five weeks as escalating Houthi attacks on Saudi targets and reports of possible renewed US strikes against Iran raised supply risks in the Middle East.

Short-term rebound. The market extended its advance, led by the VIC and VHM group, and the index is now heading toward the 1,780 zone, in line with the MA 50; we expect the market could slow here as short-term profit-taking may emerge. Most sectors rose. Support and resistance are at 1,680 – 1,840, respectively.

Trading strategy: Investors should treat the headline index only as a reference when the market is heavily dominated by the Vingroup group. In the short term caution is still warranted, but opportunities remain in several groups attracting cash flow, such as exports, real estate, industrial real estate and retail. Risk-averse investors should prioritize low-beta, high-dividend, low-debt groups.

Portfolio: New buy recommendation: TCH · Current holding: TNG, MWG · Watchlist: TCH, HPG, IDC · High-risk names to avoid: NVL, PNJ.