Dow surges 700 points, tops 49K for first time as Maduro capture sends Wall Street cheering
Wall Street’s main indexes surged on Monday, with the blue-chip Dow hitting an all-time high due to soaring financial stocks, while energy firms rose after a US military strike that captured Venezuelan President Nicolas Maduro.
In midday trading, the Dow Jones Industrial Average hit an all-time high, jumping 760 points, or 1.6%, to 49,142. The S&P 500 gained 0.8%, and the Nasdaq climbed nearly 200 points, or 0/8%, to 23,415.
Investors bet the move against Venezuela’s leadership would allow American firms access to the world’s largest oil reserves. A US embargo on Venezuelan oil remained in full effect, President Trump said.
Investors bet the move against Venezuela’s leadership would allow American firms access to the world’s largest oil reserves. A US embargo on Venezuelan oil remained in full effect, Trump said.
S&P’s energy index hit an over one-year high, up 2.5%, with heavyweights Exxon Mobil and Chevron rising 2.5% and 5.5%, respectively.
Defense-related stocks also advanced after Washington’s military action. Lockheed Martin rose 2.5% and General Dynamics climbed 2.8%. The broader aerospace and defense index reached a historic peak.
Goldman Sachs jumped 4.75% to a record high, while JPMorgan Chase and American Express rose 3% and 2.6%, respectively.
“The mood has been favoring financial stocks in recent days and as people look beyond tech, this is a sector many are choosing to look toward to,” said Steve Sosnick, chief market analyst at Interactive Brokers.
“We ended the year on a lousy note. (But) It’s normal for markets to try to start a new month or a new year on a positive tone, so we’re seeing a risk on mood,” said Sosnick.
Wall Street’s main indexes posted double-digit gains in 2025 for the third consecutive year, a run last seen during 2019-2021, but rounded off the previous week with losses as investors largely sold off tech stocks.
The sector was largely stable on Monday, up 0.4%, while among consumer discretionary names, Tesla outperformed, rising 4.2% after seven straight sessions of losses, supporting the Nasdaq.
After 2025’s last four sessions ended in the red, Monday’s rise came as a relief to investors eyeing a “Santa Claus rally” – a seasonal phenomenon in which markets tend to get a late boost over the last five trading days of December and the first two of January, according to the Stock Trader’s Almanac.
Data showed US manufacturing contracted more than expected in December, extending a 10-month slump.
The spotlight will now be on the monthly nonfarm payrolls on Friday, which could influence the Federal Reserve’s monetary policy in 2026.
Markets are pricing in about 60 basis points of interest rate easing this year, as per data compiled by LSEG.
Cryptocurrency-linked shares advanced as Bitcoin hit a more than three-week high.
Strategy was up 4%, while Coinbase gained 7.2% after a report said Goldman Sachs upgraded the exchange to “buy” from “neutral.”