Source: Sharecast
Markets were extending gains made the previous session as they snapped a four-day losing streak over the final trading days of 2025 as indices pulled back from recent records.
The Dow was up 1.3% early on Monday, topping the 49,000 level for the first time and surpassing an earlier record reached on 24 December, The S&P 500 was 0.8% higher, nearing last week's all-time high, while the Nasdaq gained 1.0%.
Geopolitics across the Americas were in focus over the weekend after the US assault on Venezuela – including the capture of president Nicolas Maduro – and Trump’s assertion that America is now running the owner of the world's largest oil reserves.
After an earlier fall, oil prices bounced on Monday morning, with Brent up 0.8% at $61.25 a barrel and WTI crude 0.9% higher at $57.85 a barrel.
Meanwhile, gold and silver prices were rising strongly – up 3.0% and 8.2% respectively – as renewed safe-haven demand pushed the commodities back towards record highs.
"After all the pushback over the Russian invasion in Ukraine, Trump has shown his hand as someone that will similarly take military action against their neighbours if he deems it of strategic importance. This opens us up to additional geopolitical tension and volatility, with Trumps willingness to plunder Venezuelan resources signalling additional risk for nations investing into US assets," said Joshua Mahony, chief market analyst at Scope Markets.
"While some see this move as one which could lessen the US debt, the immediate risk to global stability means that gold and silver once again enjoy a fresh bout of buying pressure."
In other news, the ISM's US manufacturing PMI fell for the third straight month to a 10-month low of 47.9 in December, down from 48.2 in November and below the consensus forecast of 48.3.
Energy, defence stocks provide a boost
Chevron was a standout performer early on, up nearly 5%, amid speculation that developments in Venezuela – where it remains the only major American oil producer – would boost the country's energy industry.
Petroleum refiners Valero and Phillips 66, and oilfield services groups SLB and Halliburton were all up between 6% and 9%, while giants ConocoPhillips and ExxonMobil were posting moderate gains.
Phillips 66 was also in the news after agreeing to buy the Lindsey oil refinery in the UK out of administration. The company said it would not be restarting fuel production there, but will instead integrate key assets into its nearby Humber refinery operations.
Defence stocks were also performing well, following their European counterparts higher, as increased geopolitical tensions boost their attractiveness. Lockheed Martin, General Dynamics and Northrop Grumman were all rising.
Meanwhile, tech stocks were performing well after forecast-beating fourth-quarter numbers from server giant Foxconn on the back of strong demand for its AI products. Nvidia, KLA Corp and Amazon.com were putting in decent gains shortly after the opening bell.
