What opportunities await you in the US stock market today?

Why Do Investors Pay Attention to the US Stock Market?

The US stock market is the face of the world’s largest economy. With over 75% of global market capitalization, it is not only a place for asset trading but also a barometer of global economic conditions.

The two main exchanges - New York Stock Exchange (NYSE) and NASDAQ - manage hundreds of billions of USD in daily trading. According to Intercontinental Exchange, the total market capitalization of the US stock market reached approximately $46.5 trillion (as of 09/30/2022), with NYSE accounting for $30.1 trillion.

Ways to Participate in the US Stock Market

For international investors, especially those from Vietnam, direct ownership of US stocks faces many legal restrictions. However, margin trading through derivative instruments (CFD) opens up alternative opportunities.

Through CFDs, investors can:

• Profit from price differences without actually owning the securities
• Trade in both directions - up and down
• Leverage to expand positions with small capital

US Stock Market Trading Schedule and Main Exchanges

NYSE (New York Stock Exchange):

• Standard trading hours: T2-T6, 8:30 PM - 2:00 AM
• Pre/post-market trading: 7:00 PM - 8:30 PM (pre), 3:00 AM - 5:30 AM (Post)

NASDAQ:

• Similar trading hours to NYSE
• Focused on technology companies and startups

These two exchanges serve about 5,000 different indices, but only 4 main indices are most widely followed.

Four Key Indices of the US Stock Market

###Dow Jones (DJIA)

• Founded: 1896
• Size: 30 largest companies
• Representation: About 25% of total market capitalization
• Current value (as of 03/27/2024): 39,411 points
• Characteristics: The “parent” index, closely watched as a barometer of the US economy

###S&P 500

• Founded: 03/04/1957
• Size: 500 companies
• Representation: 70% of market capitalization ($43.9 trillion USD as of 03/27/2024)
• Current value: 5,220 points
• Characteristics: Considered the best benchmark for US economic health, more diversified than Dow Jones

###Nasdaq Composite

• Founded: 1971
• Unique feature: Includes all listed companies on NASDAQ
• Current value: 18,210 points
• Market cap: $35.48 billion USD (as of 03/27/2024)
• Characteristics: Strong reflection of technology sector trends

###Nasdaq 100 (NAS100)

• Founded: 1985
• Size: 100 largest companies on NASDAQ
• Current value: 18,269 points
• Market cap: $18.24 billion USD (as of 03/27/2024)
• Characteristics: Focused on technology, telecommunications, biotech, and media sectors

Impressive Growth Achievements in the Past 5 Years

The US stock market has demonstrated remarkable recovery strength:

Main indices:

• S&P 500: +85.78%
• Dow Jones: +54.13%
• Nasdaq 100: +147.43%

Notable stocks:

• Microsoft (MSFT): +256.33%
• Apple (AAPL): +261.33%
• NVIDIA (NVDA): +1,908.58%

These figures show that despite challenges in 2022-2023 (energy crisis, Russia-Ukraine war, global inflation, Fed rate hikes), leading companies have found ways to adapt and grow.

Notable US Stocks to Watch in 2024

These stocks have shown exceptional growth over the past year:

This list reflects a trend: while tech giants experience volatility, many small and medium healthcare and biotech companies are making strong breakthroughs.

US Stock Market Trends: Recovery or Decline?

###Dow Jones - From Drop to Recovery This index plunged from 36,799 points (01/04/2022) to 28,690 points (30/09/2022), losing 28.3% of its value. But since early 2024, it has rebounded with a 5.59% increase as the Fed signals potential rate cuts.

###S&P 500 - Steady Recovery This index was similarly affected in late 2022-2023, but since October 2023, it has shifted positively. In the first 3 months of 2024, it has risen nearly 10%, indicating renewed market confidence.

###Nasdaq Composite - Rapid Recovery The tech market has unexpectedly rebounded strongly. In March 2024, it increased by only 2.28%, but the overall trend since October 2023 has been clearly positive.

###Nasdaq 100 - The Most Successful Story NAS100 is the best-performing index. From 16,000 in November 2023, it broke through 18,000 in March 2024. As of 04/01/2024, this index has increased by 24.17% over the past 6 months – a success story of leading tech companies.

Factors Shaping the Future

###Federal Reserve Policy Investors currently expect the Fed to cut interest rates. According to Goldman Sachs:

• 3 rate cuts expected in 2024
• 4 in 2025
• 1 in 2026
• Final rates will stabilize around 3.25-3.5%

If this forecast materializes, indices may continue to recover as borrowing costs decrease.

###Geopolitical Conflicts The Russia-Ukraine war and Israel-Hamas conflict remain potential risks. If Middle East tensions escalate, investor David Bahnsen (Bahnsen Group) warns the market could decline by 7-10%.

During such moments, investors often shift to safe-haven assets like gold and Bitcoin.

###Economic Reports and Inflation Every employment, inflation, or GDP report can cause short-term volatility.

Practical Investment Strategies

To participate effectively in the US stock market:

1. Understand trading hours - NYSE and NASDAQ open from 8:30 PM to 2:00 AM (Hanoi time)
2. Choose suitable tools - CFDs allow flexible trading with small capital
3. Monitor the 4 main indices - They are the best barometers of market health
4. Don’t overlook small and medium stocks - Although riskier, they offer higher growth potential
5. Manage risks - Always have an exit plan and never bet everything on a single platform

Conclusion

The US stock market is currently in a notable phase – after strong corrections, it is showing clear signs of recovery. However, investors should carefully consider risks from monetary policies and global geopolitical conflicts.

Opportunities are emerging, but success depends on your willingness to learn, plan strategies, and adhere to risk management principles.