Post by : Saif Rahman

On Monday, US stock futures showed a modest rise, signalling a potential recovery after last week's declines. This uptick was primarily influenced by a significant rally in oil and energy stocks triggered by recent political upheaval in Venezuela.

Futures contracts for the S&P 500 increased by 0.28%, while Nasdaq futures jumped by 0.65%. Dow futures remained mostly unchanged but stayed positive. The market's response followed the news that the United States successfully captured Venezuelan President Nicolas Maduro during a military operation.

President Donald Trump indicated on Sunday that further actions could be imminent if Venezuela's remaining leaders failed to meet US expectations. He emphasized a desire to “fix” Venezuela, remarks that piqued investor interest rapidly.

The stock market reacted strongly owing to Venezuela's status as the holder of the largest proven oil reserves globally. Many investors are optimistic that a shift in leadership could allow US oil companies to re-enter the market, despite the ongoing US embargo on Venezuelan oil.

Major US energy companies saw sharp increases in share prices early in trading; Exxon Mobil rose over 4%, and Chevron surged nearly 8%. Oil service firms like SLB, Halliburton, and ConocoPhillips experienced gains ranging from 6% to almost 10%.

However, despite these stock increases, oil prices dipped slightly on Monday due to robust global supply levels. Analysts believe the political developments are significant but unlikely to create a drastic and long-term spike in oil prices.

Experts pointed out that any tangible effect may first manifest in US refineries, particularly those equipped to process Venezuelan heavy crude oil. These facilities could see benefits if supply dynamics improve down the line.

In addition to energy stocks, investors monitored wider market trends. Even though Wall Street closed last week on a low note, the S&P 500 recorded a minor gain in its first trading session of 2026. Many in the trading community remain hopeful for a “Santa Claus rally,” typically observed during the final days of December and early January.

2025 proved to be a strong year for US stock indexes, marking three consecutive years of double-digit growth. The Dow Jones index noted its longest winning streak on a monthly basis since 2018.

This week, focus shifts to crucial US economic indicators, particularly labor market data. The monthly jobs report set for release on Friday is expected to influence forecasts regarding potential interest rate adjustments by the Federal Reserve later in the year. Currently, markets anticipate modest rate decreases in 2026.

Other sectors displayed early strength as well. Stocks related to cryptocurrencies surged as Bitcoin hit its highest valuation in over three weeks. Coinbase, a renowned crypto exchange, rose following a favorable assessment from a prominent investment bank.

Technology stocks found favor too, buoyed by reports suggesting potential shortages in memory chips, which could elevate prices. Shares of Micron Technology, Western Digital, and Sandisk all showed upward movement in pre-market trading.

Overall, the early gains observed on Monday conveyed a sense of cautious enthusiasm. Although global political landscapes introduced uncertainty, investors remained focused on possible avenues for growth, particularly within the energy sector as the new trading year unfolds.

#Global News