On July 28, 2026, the three major US stock indexes in New York all rose, with the S&P 500 closing at 5,850.23, up 0.9%, setting another record high closing; the Dow Jones Industrial Average rose 0.7%, and the Nasdaq Composite Index rose 1.2%. The market generally believes that better-than-expected Q2 corporate earnings and the Fed's dovish policy signals were the two main drivers of the market's rally.

Q2 Earnings: Earnings Growth Exceeds Expectations, Tech and Consumer Both Contribute

As of July 29, more than 60% of S&P 500 component companies have reported Q2 2026 results. Data show overall earnings grew about 12% year-over-year, significantly higher than the market's prior expectation of 8%. Among them, the technology sector performed particularly strongly, with net profit increases of over 15% for giants like NVIDIA, Apple, and Microsoft, benefiting from continued expansion in AI, cloud computing, and enterprise digital spending.

The consumer discretionary sector also shined, with revenue growth rates of 18% and 22% for Amazon and Tesla respectively, showing consumer spending resilience remains intact. Meanwhile, the energy sector saw slower earnings growth due to falling oil prices, but still posted positive growth overall. Analysts note that the breadth and depth of Q2 earnings exceeded expectations, demonstrating strong pricing power and operational efficiency of US companies.

Fed Policy: No Rush to Hike, Maintaining Accommodative Stance

The Fed's monetary policy meeting on July 27-28 became a market focus. Although core PCE inflation remained around 2.5%, slightly above the 2% target, Fed Chair Powell clearly stated at the post-meeting press conference that "the current interest rate level is sufficiently restrictive," and hinted at no rate hike in Q3. Powell emphasized that more evidence of sustained inflation decline is needed before considering further tightening. This dovish statement boosted market sentiment, with Treasury yields slightly down and valuation pressure on tech stocks easing.

Interest rate futures show the market expects a probability of over 85% for keeping rates unchanged in September. The liquidity environment remains friendly for US stocks, corporate financing costs are stable, and buyback activity is active. According to statistics, total buybacks by S&P 500 companies in Q2 reached $250 billion, up 10% year-over-year, further supporting stock prices.

Why Does Global Capital Keep Flowing into US Stocks?

Against the backdrop of diverging global economic growth and frequent geopolitical risks, US stocks exhibit both strong safe-haven and growth attributes. On one hand, the US economy shows unexpected resilience, with GDP annualized quarterly growth around 2.8% and a tight labor market; on the other hand, US stocks host the world's best tech leaders and consumer brands with high earnings certainty. This makes US stocks a core option for global capital allocation.

According to the latest IMF report, net global capital inflows into US stocks reached $120 billion in Q2 2026, with nearly 30% from the Asia-Pacific region. For Vietnamese investors, investing in US stocks through legal channels can diversify assets, reduce reliance on a single market (such as the Vietnamese stock market), and share in global economic growth dividends.

How Can Vietnamese Investors Participate in US Stock Investment?

Currently, Vietnamese investors can indirectly invest in US stocks through cross-border securities accounts or over-the-counter trading platforms of international brokerages. The State Bank of Vietnam has recently relaxed some restrictions on individual overseas investment, encouraging reasonable allocation of foreign assets. However, attention should be paid to exchange rate risk, transaction costs, and the volatility of US stocks themselves. Investors are advised to prioritize index ETFs (such as S&P 500 ETFs) or leading sector stocks, hold for the long term, and avoid frequent trading.

Industry insiders believe that under the environment of overall stable Vietnamese dong exchange rate against the US dollar (in July 2026, the US dollar was around 25,500 VND), investing in US stocks can effectively hedge the risk of declining purchasing power of the local currency. At the same time, the US stock market is highly transparent and liquid, suitable for investors with different risk preferences.

Outlook: High Valuation Pressure Remains, but Earnings Growth May Provide Support

The S&P 500's forward P/E ratio has risen to 22 times, above the historical average of 18 times. Some analysts warn of overvaluation; if inflation rebounds or geopolitical conflicts escalate, the market may face a correction. However, most institutions believe that as long as corporate earnings maintain double-digit growth, valuations can be digested. Goldman Sachs and JPMorgan have raised their year-end 2026 S&P 500 targets to 6,000 and 5,950 points respectively.

For Vietnamese investors, the current timing is not about chasing highs but about positioning for the long term. Through dollar-cost averaging or buying on dips, costs can be effectively smoothed. Meanwhile, they should continue to monitor the Fed's policy path, US election progress, and global trade dynamics, and flexibly adjust allocation ratios.

In summary, the strong performance of US stocks in Q2 once again confirms their status as a global capital "safe haven" and "growth engine." As global asset allocation becomes a trend, Vietnamese investors may consider including US stocks in their portfolios to achieve the dual goals of risk diversification and return enhancement.