Wall Street surged on Monday, propelled by robust gains in financial and energy sectors. The Dow Jones Industrial Average reached an all-time high, fuelled by the strong performance of financial shares. Energy firms also saw significant gains following U.S. military action related to Venezuela, which has the world’s largest oil reserves. Investors are anticipating that Washington’s actions will lead to increased access for U.S. firms to Venezuelan oil resources, despite the existing U.S. embargo.
The S&P 500 energy index climbed to its highest level since March 2025, up by 2.5%, with Exxon Mobil rising 2.4% and Chevron jumping 5.8%. Defence stocks also advanced after the U.S. military intervention, as Lockheed Martin increased by 2.8% and General Dynamics by 3.2%. The S&P 500 aerospace and defence index rose 1.8% to a record high. Meanwhile, Tesla rebounded with a 4.2% increase after a seven-session losing streak.
The S&P 500 financials index also saw a boost, rising by 2.7% as investors await upcoming quarterly reports. Goldman Sachs, a leading global investment banking, securities, and investment management firm, increased by 4.8%, and JPMorgan Chase, a global financial services firm, added 3.4%, with both reaching record highs. The broader market indices reflected the positive sentiment, with the S&P 500 up 0.76%, the Nasdaq gaining 0.76%, and the Dow Jones Industrial Average rising 1.64%.
Cryptocurrency-linked shares also experienced gains as Bitcoin hit a three-week high. Strategy, formerly MicroStrategy, climbed 4.6%, and Coinbase gained 8.6% after an upgrade from Goldman Sachs. Data indicated that U.S. manufacturing contracted more than anticipated in December, continuing a 10-month decline. Attention will now turn to the monthly nonfarm payrolls report on Friday, which may influence the Federal Reserve’s monetary policy decisions in 2026.
