Major stock indices and oil prices increased on 5th January. Energy stocks rose, and investors responded calmly to the potential consequences of a U.S. attack that apprehended the Venezuelan president Nicolas Maduro. The Dow Jones Industrial Average has hit a record.
The S&P 500 Energy Index increased to its maximum point since March 2025. Exxon Mobil and Chevron shares were up by 2.2 percent each. The energy share index of the S&P 500 increased by over 1 percent, and so did the financial shares.
The president of the United States, Donald Trump, indicated that he had temporarily placed the South American nation of Venezuela under the control of the United States following the events that occurred in the country during the weekend.
He further added that he could command a second strike in case Venezuela failed to cooperate with the U.S., so that Venezuela could open its oil business and stop drug trafficking. He also threatened to take military action in Colombia and Mexico.
Trump will meet the executives of the U.S. Oil Companies later this week to negotiate the need to produce more oil in Venezuela. This was documented by a source that knew what was going on. Oil prices also increased because traders estimated potential effects on the crude oil flows of Venezuela, which houses the largest reserves in the world.
Oliver Pursche is a senior vice president and advisor in the Wealthspire Advisors company based in Westport, Connecticut. He asserted that the markets are making logical reactions by overlooking the geopolitics of Venezuela.
He asserted that the GDP of Venezuela has no impact on the global GDP, virtually, and thus the market should do away with this. The U.S. data of the week will significantly affect the perspective on interest rates.
Dow Jones Industrial Average rose with 594.79, or 1.2, to 48.977.18, and S&P 500 rose 43.58, or 0.6, to 6,902.05; and Nasdaq Composite rose 160.19, or 0.9, to 23395.82.
The index of world stocks at the MSCI increased by a margin of 8.38 points or 0.82 per cent to 1,028.02.
The STOXX 600 in the European region increased by 0.94. Stocks in the emerging markets rose by 21.63 or 1.51 percent to 1,451.11. The price of Brent crude futures was up by a margin of one dollar to close at 61.76 per barrel. The U.S. West Texas Intermediate crude increased by one dollar to close at 58.32.
The demand for gold as a safe haven resulted in its emergence.
Spot gold was at its best point in the past 29 days. U.S. Gold Futures February Delivery rose by 2.8 percent and ended at $4,451.5 per ounce.
Dollar index dropped a little, having hit a near 4-week high position against the range currencies. Investigators were concentrated on the batch of crucial economic information this week and did not pay much attention to the situation in Venezuela.
The dollar index dropped by 0.24 percent to 98.32, the dollar against a basket comprising the yen, the euro, and other currencies.
Since the jobs report will be released on Friday, it will provide traders with new information that may give them new indications regarding the situation in the U.S. economy and the policies of the Federal Reserve. The American Treasury yields have relaxed. Yield on the standard U.S. 10-year notes fell 2.4 basis points between 4,189% late on Friday and 4.165%.
