Major U.S. stock indexes powered higher on Monday, with the Dow Jones Industrial Average hitting a fresh record high, as investors largely brushed off geopolitical risks stemming from the dramatic U.S. military operation that captured Venezuelan President Nicolás Maduro over the weekend.
Energy shares led the advance amid optimism that the regime change could open Venezuela’s vast oil reserves—the world’s largest—to greater U.S. involvement. Financial and defense stocks also posted solid gains.
The Dow Jones Industrial Average rose 600.51 points, or 1.24%, to close at 48,982.9, marking a new all-time high. The broader S&P 500 gained 45.32 points, or 0.66%, to 6,903.79, while the tech-heavy Nasdaq Composite advanced 203.37 points, or 0.88%, to 23,439.00.
European shares rose 0.9% in sympathy.
In the energy sector, the S&P 500 energy index jumped more than 2%. Standouts included Exxon Mobil, up over 2%, and Chevron, which surged more than 5%. An S&P index tracking defense shares climbed over 1%, while financial stocks also moved firmly higher.
Oil prices extended gains as traders weighed potential disruptions and opportunities in Venezuelan crude flows following the U.S. intervention.
Brent crude futures settled up 87 cents, or 1.43%, at $61.62 a barrel. U.S. West Texas Intermediate crude rose 90 cents, or 1.57%, to $58.22.
The market reaction followed a weekend U.S. special forces raid that resulted in the capture of Maduro and his wife, Cilia Flores. The couple was subsequently flown to New York to face long-standing U.S. charges of narco-terrorism and drug trafficking.
President Donald Trump announced that the United States would place Venezuela under temporary American control to facilitate the opening of its oil industry, combat drug trafficking, and ensure an orderly transition. He warned that further military action could follow in Colombia or Mexico if those countries fail to cooperate with U.S. efforts.
Despite the bold regional assertions, investors appeared unfazed by broader escalation risks.
“It’s a reasonable reaction from the markets to largely ignore the geopolitics around Venezuela, with the exception of a handful of oil companies, which are spiking,” said Oliver Pursche, senior vice president at Wealthspire Advisors in Westport, Connecticut. “Venezuela’s GDP has virtually no impact on global GDP… so the market should ignore it.”
The upbeat session marked a strong start to the trading week, with markets focusing on potential corporate benefits from increased access to Venezuelan resources rather than wider international ramifications.