Dow Jones and S&P 500: US Indices Hit Records as Energy Sector Leads Rally Today

Energy Stocks Surge on Venezuela Infrastructure Rebuild Hopes

Energy stocks moved to the forefront after a U.S. military strike over the weekend that captured Venezuelan President Nicolas Maduro. With Washington “running the country” according to President Trump, investors threw money at energy companies in anticipation of the country’s new leadership allowing U.S. firms access to the world’s largest oil reserves. Trump also added that a U.S. embargo on Venezuelan oil remained in full effect.

Leading the gains in the S&P 500 Index is Halliburton, up 9.696%, SLB, up 9.304% and Valero Energy, up 8.714%. Chevron, up 5.42% is helping to give the Dow a boost.

Financial Giants and Defense Contractors Post Strong Gains

Also impacting the Dow positively are financial giants Goldman Sachs Group and JPMorgan Chase, up 3.54% and 3.11%, respectively.

A bullish outlook for defense-related stocks after the military action this weekend is helping to boost shares of leaders Lockheed Martin (+2.5%) and General Dynamics (+2.8%).

Energy and Financials Lead Sector Performance

For a second session in a row, the Energy Sector is the biggest gainer, up 2.63%. This is followed by the Financials Sector, up 2.59%. Consumer Discretionary is another sector posting a gain of more than 2.0%. Technology is taking a backseat today to Energy, with a relatively small 0.20% increase.

“With the markets taking geopolitics in stride so far, the first trading week of the New Year may likely revolve around whether tech will find its footing after stumbling into the end of the year,” Chris Larkin, managing director, trading and investing, E*TRADE at Morgan Stanley, said in a note.