US stock futures made gains on Monday morning as investors reacted to recent geopolitical events, particularly a US military operation in Venezuela that resulted in the ousting and arrest of President Nicolás Maduro. Futures for the Dow Jones Industrial Average increased by 0.1%, while S&P 500 futures rose by 0.2%, and Nasdaq 100 futures climbed approximately 0.5%.
This futures activity comes on the heels of a mixed finish last week. The S&P 500 and Dow Jones Industrial Average both closed higher on Friday, whereas the Nasdaq Index remained mostly unchanged.
The military operation in Venezuela drew significant attention as investors entered the first full week of the new year. President Trump commented on the situation, asserting that the US would “run” Venezuela “until such time as we can do a safe, proper and judicious transition.” In contrast, Secretary of State Marco Rubio adopted a more cautious tone, indicating that the US possesses “a tremendous amount of leverage” to achieve its goals while clarifying that it would not directly govern the country.
Market analysts have largely downplayed the potential long-term economic repercussions of the upheaval. Venezuela’s oil production currently stands at less than 1 million barrels per day, accounting for under 1% of global output, which limits its impact on energy markets in the long run. However, immediate supply concerns suggest that oil prices may rise in the short term, with West Texas Intermediate and Brent crude experiencing minor declines late Sunday.
Looking ahead, investors anticipate a return to a regular flow of economic data this week. Attention will particularly focus on the December jobs report, scheduled for release on Friday, with economists predicting an increase of around 55,000 jobs for that month.
Additionally, the successful start of the year for semiconductor manufacturers has made companies like Nvidia, Advanced Micro Devices, and Taiwan Semiconductor notable points of interest. The CES tech show in Las Vegas, running from Tuesday to Friday, will also capture investor attention.
In commodity markets, gold and silver prices increased as investors sought safe havens in light of the volatility stemming from the US’s involvement in Venezuela. Although oil prices initially fell, they quickly rebounded as markets began to evaluate the implications of Maduro’s arrest.
