US stock futures remained relatively stable as investors evaluated recent geopolitical events following a military operation in Venezuela that resulted in the ousting and apprehension of President Nicolás Maduro. Dow Jones Industrial Average futures were just below the flatline, while S&P 500 futures saw a slight uptick of 0.1%. In contrast, Nasdaq 100 futures experienced a moderate increase of approximately 0.3%.
This movement in futures came on the heels of a mixed conclusion to the previous week’s trading. Friday saw gains for both the S&P 500 and Dow Jones Industrial Average, while the Nasdaq ended largely unchanged.
The focus was significantly on the military action in Venezuela as investors anticipated the first full trading week of the new year. President Trump emphasized that the US intends to “run” Venezuela “until such time as we can do a safe, proper and judicious transition.” Secretary of State Marco Rubio adopted a more measured approach, indicating that while the US has substantial leverage to meet its objectives, there is no direct intention to govern the South American nation.
Market analysts generally considered the long-term economic implications of the situation to be limited. Venezuela’s oil production has plummeted to below 1 million barrels per day, accounting for less than 1% of global output. This reality diminishes the potential for significant disruptions in energy markets. However, immediate supply concerns suggest that oil prices may rise in the coming days, with West Texas Intermediate and international benchmark Brent crude experiencing slight declines late Sunday.
As the week unfolds, investors are prepared for a more regular flow of economic data. Focus will pivot to the December jobs report scheduled for release on Friday, where economists anticipate a payroll growth of around 55,000 for the month.
The semiconductor sector has kickstarted the year strongly, keeping initial attention on prominent companies like Nvidia, Advanced Micro Devices, and Taiwan Semiconductor. Additionally, the CES technology show, running from Tuesday through Friday in Las Vegas, is set to attract considerable interest from investors eager to gauge the latest trends and innovations.
As oil prices initially dropped but later rebounded, markets continue to assess the ramifications of the US’s decision regarding Maduro.
