Wall Street resumes love-in with AI with stock set to bolt out of the gates

• Nasdaq 100 futures rose 0.75% and S&P 500 futures gained 0.4%, with AI optimism sparked by positive news from Nvidia suppliers and TSMC
• Markets largely ignored geopolitical tensions after President Maduro's capture in Venezuela, as the country represents less than 1% of global oil output
• Investors are looking ahead to Friday's US jobs data, which will provide the first clear economic signal of 2026

Market Summary: Wall Street Set to Open Higher on AI Enthusiasm

Key Market Movements:

Wall Street futures point to a strong opening for the first full trading week of 2026, with S&P 500 futures up 0.4%, Nasdaq 100 futures rising 0.75%, and Dow futures climbing 0.7%. The tech-heavy Nasdaq is leading gains, reflecting renewed investor enthusiasm for artificial intelligence.

AI Sector Catalyst:

The primary driver is a fresh wave of optimism around AI stocks, fueled by strong performance from Nvidia suppliers and a bullish analyst note on Taiwan Semiconductor Manufacturing Company (TSMC). This marks a resumption of Wall Street's "love-in" with artificial intelligence investments.

Geopolitical Backdrop:

Markets are largely dismissing geopolitical concerns following President Nicolás Maduro's capture in a US-led operation in Venezuela. President Trump announced temporary US oversight during Venezuela's "judicious transition," though officials later moderated the language. Energy markets showed minimal reaction, as Venezuela represents less than 1% of global oil output, with crude prices declining only slightly.

Safe-Haven Assets:

Gold and the US dollar advanced on elevated geopolitical tensions, while 10-year Treasury yields edged lower, reflecting some risk-aversion sentiment.

Economic Calendar:

Investors are focusing on Friday's US jobs report, which will provide the first significant economic data point of 2026 and could influence Federal Reserve policy expectations.

Market Implications:

The strong futures performance suggests traders are prioritizing technology sector momentum over geopolitical risks, with AI-related stocks expected to "bolt out of the gates" when markets open. The divergence between tech enthusiasm and geopolitical caution creates a mixed risk environment for the week ahead.