U.S. stocks rallied Monday as Wall Street kicked off the first full trading week of 2026 on a strong note, with gains in technology and energy lifting the major indexes. Investor sentiment improved as optimism around AI demand renewed and energy stocks jumped following the U.S. military’s weekend operation in Venezuela.
The Dow Jones Industrial Average climbed roughly 1.5%, or more than 700 points, pushing the blue-chip index above 49,000 for the first time. The S&P 500 added about 0.8%, while the Nasdaq Composite gained roughly 0.7%, as megacap tech stocks stabilized after a choppy start to the year.
Market Movers:
- Chevron (CVX) +3%: Shares rose as investors priced in potential long-term opportunities tied to the rebuilding of Venezuela’s oil infrastructure following the U.S. intervention. Energy majors broadly outperformed as expectations grew for increased U.S. involvement in restoring production capacity in the country.
- Halliburton (HAL) +9%: The oilfield services giant surged as traders anticipated early demand for drilling, work-over, and infrastructure repair services in Venezuela. Historically, oilfield services firms have been among the first beneficiaries when production activity ramps up in politically disrupted regions.
- Nvidia (NVDA) +1%: Shares advanced as renewed confidence in AI spending returned to markets, supported by upbeat commentary from suppliers and partners ahead of the CES technology conference. Investors continue to view Nvidia as a core beneficiary of sustained data-center and AI infrastructure investment.
- Taiwan Semiconductor Manufacturing (TSM) +3%: The chipmaker gained after analysts highlighted expectations for another year of solid growth driven by AI-related demand. TSM remains central to the global semiconductor supply chain as customers expand advanced-node production.
- Bank of America (BAC) +2%: Bank stocks climbed as rising equity markets and expectations for a steady economic backdrop supported financials. Investors are increasingly focused on upcoming earnings as trading activity and dealmaking show signs of stabilizing.
- Arrowhead Pharmaceuticals (ARWR) -9%: Shares fell as traders locked in gains following a strong rally over the past year, despite recent regulatory progress. The pullback reflects profit-taking rather than a change in the company’s long-term outlook.
Energy Stocks Lead as Venezuela Developments Reshape the Narrative
Energy shares were among the day’s strongest performers after the U.S. confirmed the capture of Venezuelan President Nicolás Maduro, marking a dramatic escalation in geopolitical tensions. While Venezuela currently contributes less than 1% of global oil output, investors are looking ahead to the potential reopening and modernization of the country’s severely degraded energy infrastructure.
Oilfield services companies in particular drew interest, as rebuilding production would likely require extensive technical expertise, equipment, and manpower. Crude prices edged higher, but analysts largely downplayed the risk of near-term supply disruptions given Venezuela’s limited current output.
Tech Finds Its Footing as AI Optimism Returns
Technology stocks rebounded as optimism around AI demand regained traction. Updates from hardware suppliers and chipmakers reinforced expectations that AI-related capital spending will remain resilient into 2026, even as investors grow more selective around valuations. The rally comes ahead of major industry events, including Nvidia CEO Jensen Huang’s keynote at CES, which investors view as a potential catalyst for fresh guidance on AI infrastructure trends. While volatility remains, tech continues to anchor broader market gains.
Economic Data and Rates Stay in Focus
Treasury yields dipped modestly as investors weighed geopolitical risk alongside the return of a full slate of economic data. Attention is turning to Friday’s jobs report, which will provide a clearer read on labor market momentum heading into the year. At the same time, markets continue to assess the Federal Reserve’s policy outlook, with expectations leaning toward rates remaining on hold in the near term. A steady rate environment is seen as supportive for equities, particularly cyclical and growth-oriented sectors.
Looking Ahead
As 2026 begins, investors are balancing renewed risk appetite with lingering macro and geopolitical uncertainty. Focus in the days ahead will center on economic data, corporate earnings guidance, and signals from major tech leaders, as markets look to determine whether this early-year rally has the breadth and durability to carry into the first quarter.