Dow surges 700 points, tops 49K for first time as Maduro capture sends Wall Street cheering

• The Dow jumped 713 points (1.5%) to 49,095, the S&P 500 gained 0.8%, and the Nasdaq climbed over 200 points (1%) as financial stocks soared, with Goldman Sachs up 4.75% and JPMorgan rising 3%
• Energy stocks gained 1.3% and defense contractors advanced sharply (Lockheed Martin up 2.5%, General Dynamics up 2.8%) on expectations of access to Venezuela's oil reserves and military action
• The rally follows a week of losses and comes ahead of Friday's key nonfarm payrolls report, with markets pricing in about 60 basis points of Fed rate cuts in 2026

Market Summary

Market Performance:

Wall Street rallied sharply on Monday, with the Dow Jones Industrial Average surging 713 points (1.5%) to hit an all-time high of 49,095. The S&P 500 gained 0.8%, while the Nasdaq climbed over 200 points (1%) to 23,458.

Key Catalyst:

Markets surged following the reported capture of Venezuelan leader Maduro after a US military strike. President Trump indicated potential for additional strikes if cooperation is not forthcoming. Investors anticipate this development could provide American firms access to Venezuela's oil reserves, the world's largest, though the US embargo remains in place.

Sector Winners:

• Energy: S&P energy index gained 1.3% on potential access to Venezuelan oil
• Defense: Aerospace and defense index hit record highs, with Lockheed Martin up 2.5% and General Dynamics climbing 2.8%
• Financials: Goldman Sachs jumped 4.75% to a record, JPMorgan Chase rose 3%, and American Express gained 2.6%
• Consumer Discretionary: Sector climbed 2.1%, led by Tesla's 4.2% gain after seven straight losing sessions

Technology: Tech stocks stabilized (up 0.2%) after previous week's sell-off, with Nvidia adding 0.6%.

Market Context:

The rally follows a weak prior week that defied "Santa Claus rally" expectations. All three major indexes posted double-digit gains in 2025 for the third consecutive year, last seen in 2019-2021.

Outlook:

Attention turns to Friday's nonfarm payrolls data, which could influence Federal Reserve policy. Markets currently price in approximately 60 basis points of rate cuts in 2026. December manufacturing data showed continued contraction amid tariff pressures.