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

The US stock market continues to reaffirm its position as the main driver of the global economy. After a decline in 2022-2023, the indices have shown strong signs of recovery since the last quarter of 2023. This article will help you grasp the key points about **US stocks**, from how they operate to current investment opportunities.

### Market Size and Position of the US Stock Market

It is no coincidence that **US stocks** are considered the largest trading platform on the planet. Holding 75% of the global market capitalization, this market is operated by two giant exchanges: the New York Stock Exchange (NYSE) and Nasdaq. As of September 2022, the total market value exceeded $46.5 trillion, with NYSE alone holding $30.1 trillion.

This enormous growth stems from a list of thousands of companies across various industries. Therefore, exchanges have created indices to help investors monitor overall market performance.

### Major US Stock Indices

**1. S&P 500 Index**

This measures the performance of the 500 largest publicly traded companies. With a 70% share of the total market value as of March 2024, the S&P 500 is considered the most reliable barometer of the US economy’s health. This index reflects all sectors from technology, finance to consumer goods.

The 5-year performance of the S&P 500 reached 85.78%, indicating sustainable growth momentum despite market volatility.

**2. Dow Jones (DJIA)**

Founded in 1896 by Charles Dow, this index measures the activity of the 30 largest companies. DJIA accounts for about 25% of the total market value. Although narrower than the S&P 500, Dow Jones remains the most closely watched index by global investors.

Over the past 5 years, DJIA has grown by 54.13%, slower than tech indices due to the conservative nature of its component stocks.

**3. Nasdaq Composite and Nasdaq 100**

The Nasdaq Composite includes all over 3,000 companies listed on Nasdaq, many of which are startups and tech enterprises. This index reflects the trend of the tech sector, with more volatility compared to other indices.

Nasdaq 100, launched in 1985, focuses on the 100 largest non-financial companies on Nasdaq (excluding financials). With a 147.43% growth over 5 years, it is the highest-growth index among the three main indices.

### Notable Stocks in 2024

Leading tech stocks continue to top the list of high-growth assets:

- **Microsoft (MSFT)**: Up 256.33% over 5 years, currently trading at $442.85
- **Apple (AAPL)**: With a 261.33% increase, trading around $247.39
- **NVIDIA (NVDA)**: An extraordinary increase of 1,908.58% thanks to the AI boom, representing the largest growth story

Besides tech giants, notable stocks also include Amazon, Google, Tesla, and Disney. 2024 has also seen a surge in some small-cap stocks with astonishing gains:

- SWAV (Shockwave Medical): +828.8%
- VKTX (Viking Therapeutics): +795.13%
- LWAY (Lifeway Foods): +787%

### How to Trade US Stocks

To participate in **US stock trading**, Vietnamese individual investors cannot directly buy stocks due to legal restrictions. However, a popular alternative is margin trading through Contracts for Difference (CFD).

This method allows traders to:
- Profit from price differences without owning the actual stocks
- Trade both upward and downward movements
- Leverage to maximize profits (as well as risks)

### Recent Market Trends and Forecasts

**Strong recovery from Q4 2023**

After difficulties in 2022-2023 due to inflation, Fed rate hikes, and geopolitical events, the **US stock market** began to recover from October 2023. Specifically:

- Dow Jones increased by 5.59% in the first 3 months of 2024
- S&P 500 rose nearly 10% in the same period
- Nasdaq 100 increased by 24.17% over the last 6 months (until April 2024)

**Factors influencing future trends**

1. **Fed interest rate policy**: The market is currently expecting rate cuts. Goldman Sachs forecasts the Fed will cut rates 3 times in 2024 and 4 times in 2025, potentially supporting further growth.

2. **Geopolitical situation**: The Russia-Ukraine war and Middle East conflicts could impact investor confidence. Some experts warn that if conflicts escalate, **US stocks** could decline by 7-10%.

3. **Corporate performance**: Business profits remain key to the long-term growth of the entire market.

### Trading Hours

NYSE and Nasdaq operate from Monday to Friday. Standard trading hours are usually from 8:30 PM to 2:00 AM (Vietnam time). Additionally, there are pre-market (7:00 PM - 8:30 PM) and after-hours (3:00 AM - 5:30 AM) trading sessions.

### Conclusion

The **US stock market** still offers great opportunities for global investors despite short-term volatility. The recovery from Q4 2023 demonstrates the market’s resilience, especially in the technology sector.

However, any investment decision requires a deep understanding of the market and careful risk management. The stocks that surged this year could also experience significant corrections in the future, so building a diversified portfolio is a wise strategy.