Wall Street Sees No Ceiling for Bull Market as Banks Predict Back-to-Back Gains
- Juan Allan
- Jan 6
- 3 min read
Financial and energy stocks propelled the Dow to a historic 48,977 points, even as a record global oil glut of 3.8 million barrels per day is expected to persist into 2026
U.S. officials began planning for a military intervention in August, following intelligence that led to the January 3 invasion of Venezuela. President Trump described the strike as "fast and easy"—comparing it to watching a TV show—while reporting zero casualties among American forces.
However, in the immediate aftermath of the strike, international media outlets reported a significant toll on the ground. Sources indicate that more than 80 individuals, including members of the Venezuelan security forces and civilians, were killed during the offensive.
According to Investing.com, oil prices rose in early Asian trade on Monday, reversing initial losses after the U.S. over the weekend captured Venezuelan President Nicolas Maduro and said it was taking control of the Latin American country.
Traders also digested an OPEC+ decision to leave oil production unchanged, amid heightened political tensions between Saudi Arabia and the UAE over the conflict in Yemen.
Brent oil futures for March rose 0.3% to $60.90 a barrel by 19:09 ET (00:09 GMT), while West Texas Intermediate crude futures rose slightly to $57.16 a barrel.
Oil prices were nursing an over 18% slide in 2025, their worst in five years, as fears of a supply glut and weakening demand battered crude markets.
U.S. Apprehends Maduro as Trump Signals Oversight of Venezuelan Oil Assets
After the capture of Venezuelan former President Maduro, Donald Trump said the United States will run the country until a new leader is elected. Meanwhile, the most important U S Companies will move into Venezuela and control oil production.
U.S. equities gained on Monday, buoyed by a rebound in financial and energy stocks. Higher oil prices fueled the energy sector’s rise, even as markets worked to digest the implications of the U.S. strike against Venezuela.
Market volatility saw crude futures finish 1% higher to start the week, rebounding from early losses. The move reflects growing speculation over Trump’s strategy to tap into Venezuela’s vast reserves—the world's largest—by allowing American investment to bypass current sanctions and repair an aging oil grid that has decimated the country's output.
According to Bloomberg, such a reconstruction would be highly ambitious and most likely a distant prospect. In the meantime, worldwide oil supplies are expected to exceed demand by 3.8 million barrels a day in 2026, which would mark a record glut, according to the International Energy Agency.
As reported by Ambito, the Dow Jones Industrial Average rose 1.2% to 48,977.49 points, a new all-time high. Meanwhile, the S&P 500 gained 0.6% to 6,901.64 points, and the Nasdaq Composite appreciated 0.7% to 23,395.82 points.
Shares of US oil groups Chevron (+5.1%), ExxonMobil (+4.3%), and ConocoPhillips (+2.6%) advanced in early trading, driven by the general rise in the energy sector.
The financial sector rose thanks to the boost from Wall Street bank shares such as Goldman Sachs Group Inc. (+3.7%), Citigroup Inc. (+3.8%), and State Street Corp. (+3%).
If the sudden events in Venezuela could be distilled into one market conclusion, it would be future oil supply… especially as oil and gasoline prices may drop sharply,” Ben Emons, chief investment officer and founder at Fed Watch Advisors, said in a note.