US stocks rallied hard on Monday, shrugging off the shock of the US military action in Venezuela. The Dow jumped almost 600 points to close at a record 48,977, while the S&P 500 rose 0.64% to 6,902 and the Nasdaq added 0.69% to 23,396. Investors largely bet the intervention would not spiral into a broader conflict that upsets markets.
Energy drives the rally
Energy stocks led the gains on expectations US firms could benefit from rebuilding Venezuela’s oil infrastructure and potentially gaining greater access to its oil industry. Chevron surged 5.1%, Exxon Mobil added 2.2%, while oilfield services names were even stronger — Halliburton jumped 7.8% and SLB climbed nearly 9%. The Energy Select Sector ETF, XLE, rose almost 3%.
Safety trades and financials
Even with the risk-on tone in equities, investors added some hedges. Gold futures jumped 2.8% for their best day since late October, while bitcoin traded above US$94,000. Financials also rose, reflecting optimism about US growth this year — Goldman Sachs gained 3.7% and regional lender US Bancorp rose 2.9%.
Australia
Locally, SPI futures point to a firmer start — the ASX 200 is expected to open about 34 points higher, up 0.39% to 8,750, tracking Wall Street’s rally and the strong lift in energy.
