The New York stock markets on Monday showed little reaction to the U.S. invasion of Venezuela and the announcement regarding its intent to “run” the country.
All three major indices climbed, driven by strong performances in tech and energy stocks. The Dow Jones Industrial Average made history by breaking the 49,000 mark for the first time.
By midday, the Dow had surged 1.5% from the previous close. Both the S&P 500 and Nasdaq indices were up 0.7%.
Tesla bounced back after an eight-day slump, jumping over 4% to 455 USD, while quantum computing startups like IonQ also saw gains.
However, the initial momentum began to wane as the day progressed. Nvidia, which had soared 2.5% to 193.63 USD in morning trading, reversed course and dipped 0.7% in the afternoon.
Despite concerns, market reaction to the fallout from the Venezuelan situation remained muted. While U.S. President Donald Trump stated his intention to “run” Venezuela, market analysts believe this approach will differ from the U.S.’s past occupation and governance of Iraq.
Oil stocks showed particular strength. Oil giants Chevron and ExxonMobil saw gains of over 5% and 2% respectively. Chevron remains the sole major U.S. oil company operating in Venezuela, albeit with limited production, reportedly just over 100,000 barrels per day.
Investors are betting that a pro-U.S. regime change in Venezuela could allow Chevron to boost production and other U.S. oil firms to resume operations there. This optimism propelled oil exploration and field services company Halliburton to surge over 11%.
