Dow Surges Past 49,000 as Energy Stocks Rally on Venezuela Upheaval

U.S. stocks climbed on Monday, with the Dow Jones Industrial Average pushing past 49,000 for the first time, driven by a broad rally in energy and financial shares after U.S. military action in Venezuela led to the arrest of leader Nicolás Maduro.

The Dow Jones Industrial Average added 594.79 points, or 1.23%, to close at 48,977.18. The S&P 500 gained 43.58 points, or 0.64%, to finish at 6,902.05, while the tech-heavy Nasdaq Composite rose 160.19 points, or 0.69%, to 23,395.82.

Energy stocks were in the spotlight following the weekend’s events. Chevron (CVX), the only major U.S. oil company still operating in Venezuela, saw its shares jump 5.10% to $163.85, marking their largest daily gain since April. President Trump said U.S. energy firms could invest billions in the region, fueling optimism. Other oil giants also advanced, with Exxon (XOM) rising about 2% to a record high and ConocoPhillips (COP) gaining nearly 3%.

The rally extended to oilfield services companies, which could be central to rebuilding Venezuela’s dilapidated oil infrastructure. Baker Hughes (BKR) and Halliburton (HAL) climbed over 5% and 8%, respectively. The situation drew parallels to Halliburton’s surge after the 2003 U.S. invasion of Iraq, when it secured major government contracts.

U.S. refiners are also positioned to benefit from potential access to Venezuela’s heavy, sour crude. Valero Energy Corporation (VLO) surged about 9.5%, while Marathon Petroleum Corporation (MPC), the largest U.S. refiner by volume, added nearly 6%. The prospect of a large, cheap supply of heavy crude is a boon for Gulf Coast refiners equipped to process it.

Despite the optimism, one expert cautioned that rebuilding Venezuela’s oil infrastructure will likely cost tens of billions of dollars and take years.

Financial stocks also contributed significantly to the market’s advance. Goldman Sachs Group (GS) climbed 3.73% to $948.44, while Caterpillar (CAT) rose 2.96% to $616.10. Both were among the top performers on the Dow, where 18 of its 30 components ended in positive territory. The biggest decliners were Amgen (-2.11%), Coca-Cola (-1.71%), and Johnson & Johnson (-1.47%).

The geopolitical developments also rippled through commodity markets. Gold futures (GC=F) rose 2% to trade above $4,450 an ounce, while silver futures (SI=F) jumped 7% to around $76 an ounce. The U.S. dollar index (DX-Y.NYB) also strengthened, reaching its highest level since mid-December.

The day’s gains came after Wall Street indices ended the previous week with losses, dashing hopes for a “Santa Claus rally.” However, for 2025, the major indices posted double-digit gains for the third consecutive year, a streak last seen from 2019-2021. The Dow also marked its eighth straight winning month in December, its longest such run since 2017-2018.

On the economic front, data released Monday showed U.S. manufacturing activity contracted for a tenth straight month in December. The Institute for Supply Management’s (ISM) manufacturing PMI fell to 47.9, a 14-month low, from 48.2 in November. Readings below 50 indicate contraction. Analysts polled by Reuters had expected a reading of 48.4.

“For every comment about hiring, there were three about reducing employment levels,” Susan Spence, chair of the ISM Manufacturing Business Survey Committee, noted in the report. “Companies continued to focus on accelerating staff reductions because of uncertain demand in the short and medium term.”

Investors are now looking ahead to a week of key labor market data, including the ADP private sector employment report on Wednesday, weekly jobless claims on Thursday, and the government’s comprehensive jobs report on Friday.

In other market news, Bitcoin (BTC-USD) surpassed $93,000, with crypto data firm 10X Research noting in a report that the cryptocurrency has “entered a bullish trend” to start 2026.

Shares of Novo Nordisk (NVO) rose 3% after its weight-loss pill Wegovy launched in the U.S. The GLP-1 pill is the first of its kind to hit the market.

QXO Inc. (QXO) shares gained over 4% in pre-market trading after Apollo Global Management Inc. agreed to invest over $1 billion in the distribution company.

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