Major Wall Street indices posted strong gains on Monday, with the Dow Jones Industrial Average climbing to a new all-time high, driven primarily by a sharp rise in financial stocks. Energy companies also advanced, following the United States’ military action in Venezuela and the arrest of President Nicolás Maduro.
Investors are betting that the move against Venezuela’s leadership could eventually allow US companies access to the country’s vast oil reserves, the largest in the world. Despite this, US President Donald Trump said that the American oil embargo on Venezuela remains fully in force.
Energy and defence stocks surge
The energy sector of the S&P 500 rose to a more than one-year high, gaining 2.5% on the day. Shares in major energy companies Exxon Mobil and Chevron climbed by 2.5% and 5.5% respectively.
Defence-related stocks also moved higher following Washington’s military action. Lockheed Martin rose 2.2%, while General Dynamics gained 2.8%. The broader aerospace and defence index reached a record high.
Market snapshot
At 18:48 Cyprus time, the Dow Jones was up 705.41 points, or 1.46%, at 49,087.80. The S&P 500 gained 58.59 points, or 0.85%, to 6,917.30, while the Nasdaq Composite rose 234.02 points, or 1.01%, to 23,469.64.
The financial sector, up 2.5%, provided the strongest boost to the market. Major banks such as Goldman Sachs and JPMorgan Chase touched record highs, posting gains ranging from 1.9% to 3.9%.
Investors rotate beyond tech
“The environment has been favourable for financial stocks in recent days and, as investors look beyond technology, this is a sector many are choosing to move into,” said Steve Sosnick, chief market analyst at Interactive Brokers.
“We ended the year on a weak note. It is natural for markets to try to start a new month or a new year on a positive footing, so we are seeing a willingness to take on risk,” he added.
Wall Street’s main indices recorded double-digit gains in 2025 for a third consecutive year, a streak last seen between 2019 and 2021. However, markets ended the previous week lower, as investors broadly sold off technology stocks.
Source: CNA