## Exciting Investment Opportunities in the US Stock Market: A Comprehensive Guide for Traders

### Why Is the US Stock Market Important?

The US stock market plays a central role in the global economy, controlling 75% of the world's market capitalization. It is not only the largest trading floor but also a barometer of the health of the US economy and has a profound influence on other markets.

Operations in this market are coordinated by two of the world's leading stock exchanges: the New York Stock Exchange (NYSE) and the NASDAQ Stock Market. According to Intercontinental Exchange, the total market value as of 30/9/2022 exceeded $46.5 trillion, with NYSE alone holding over $30.1 trillion.

### Profit-Making Path from US Stocks

Vietnamese investors cannot directly own US stocks under current laws. However, margin trading through derivative instruments like Contracts for Difference (CFD) offers a feasible alternative. This method allows traders to profit from price differences without owning the actual assets, while taking advantage of both rising and falling markets.

### Trading Hours: What You Need to Know to Optimize

The two major stock exchanges operate within a unified schedule from Monday to Friday. Standard trading hours are from 20:30 to 2:00 AM Vietnam time (summer); pre-market trading from 19:00 to 20:30; after-hours trading from 2:00 to 5:30 AM.

US stock indices like the S&P 500 and Nasdaq 100 have extended trading hours, from Monday 5:00 AM to Saturday 4:00 AM (summer).

### Four Major Stock Indices Dominate the Market

**Dow Jones (DJIA)**: Established in 1896 by Charles Dow, representing 30 major companies. This index accounts for about 25% of the total US stock market value, with a current market cap of $39.28 billion (as of 27/3/2024), at a price of 39,411(. DJIA is highly sensitive to geopolitical, economic, and natural disaster events.

**S&P 500 Index**: Developed in 1957 by S&P Dow Jones Indices, this index includes 500 leading companies across various sectors. Holding 70% of the total market value )$43.9 billion###, the S&P 500 is considered the best benchmark for large-cap stocks. However, 50% of its value is determined by the top 45 companies.

**Nasdaq Composite Index**: Founded in 1971, this comprehensive index includes thousands of companies, from large to small, including startups. With a market cap of $35.48 billion, it reflects the technology sector's activity and investor sentiment towards speculative stocks.

**Nasdaq 100 Index**: Completely different, this index includes only the 100 largest companies on NASDAQ, excluding financial sectors. With a market cap of $18.24 billion, it focuses on Technology, Telecommunications, Biotechnology, Media, and Services.

### Impressive Performance Over the Past 5 Years

The 5-year growth rates are: S&P 500 at 85.78%; Dow Jones at 54.13%; Nasdaq 100 at 147.43%. For individual stocks, Microsoft increased by 256.33%; Apple by 261.33%; NVIDIA surged with a record increase of 1,908.58%, reflecting the explosive trend of AI technology.

( Top Promising Stocks in 2024

Notable stocks include: VKTX )Viking Therapeutics( with a 795.13% increase; SWAV )Shockwave Medical( 828.8%; ZJYL )Jin Medical International( 750%; LWAY )Lifeway Foods( 787%; SMID )Smith-Midland( 491.89%; PRAX )Praxis Precision Medicines### 394.39%. These stocks show strong vitality despite significant market volatility from 2022-2023 due to energy crises, Russia-Ukraine conflicts, global inflation, and Fed rate hikes.

( Current Growth Drivers

**Interest Rate Cut Expectations**: US stocks continue to rise on expectations that the Fed will cut interest rates in 2024-2025. Goldman Sachs forecasts three cuts in 2024, four in 2025, and one in 2026, bringing rates down to 3.25-3.5%.

**Recovery from the Bottom**: Dow Jones adjusted from a peak of 36,799 )4/1/2022( to 28,690 )30/9/2022###, down 28.3%### but increased by 5.59% in the first three months of 2024. The S&P 500 and Nasdaq show similar signals with gains of nearly 10% and 2.28%, respectively. Nasdaq 100 is the most impressive, rising 24.17% over the past six months, breaking the 18,000 level in March 2024.

Risks to Watch

Conflicts between Russia-Ukraine and Israel-Hamas could negatively impact the market. If Middle East tensions escalate, the market could decline 7-10% as investors flock to safe assets like gold and Bitcoin. Some indices have already shown signs of stabilization, potentially forming a bottom before continuing upward trends.

Conclusion

The US stock market is currently in an optimistic phase with many opportunities for investors. Through tools like CFDs, Vietnamese traders can participate and capitalize on these fluctuations. The combination of interest rate expectations, economic recovery, and quality stocks creates a favorable environment for those who know how to read the US stock market.