U.S. stocks surged on Tuesday as investors largely brushed aside geopolitical volatility following the U.S. capture of Venezuelan leader Nicolás Maduro.
The Dow Jones Industrial Average climbed 1% to 49,462, marking its first-ever close above 49,000 and logging a second consecutive record. With three straight sessions of gains, the Dow is off to its strongest start to a year since 2003, according to Dow Jones Market Data.
The S&P 500 added 0.6%, reaching its first record close since December 24.
Meanwhile, the Trump administration has begun discussions with oil companies regarding potential opportunities in Venezuela, a White House official said. Despite that development, energy stocks retreated on Tuesday after leading the market higher the previous session.
Investors are now shifting focus to upcoming economic data, including key employment reports due later this week. The official December jobs report is scheduled for Friday, with additional labor data expected on Wednesday. On Tuesday, the S&P services PMI for December came in slightly below expectations.
Global markets also posted strong gains. Stock benchmarks in Japan, Singapore, and South Korea closed at record highs, while copper futures set a new all-time high. London’s FTSE 100 rose 1.2%, marking its third straight record close.
Precious metals advanced, led by silver futures, which jumped 5.7% to trade above $80 per troy ounce. Bitcoin prices eased back toward $92,000 after hitting their highest end-of-day level since November on Monday. Separately, Morgan Stanley disclosed plans to launch exchange-traded funds holding bitcoin and solana, according to filings released Tuesday.
Frequently Asked Questions
Why did U.S. stocks rally despite geopolitical tensions?
Markets focused on strong momentum, record-breaking index levels, and upcoming economic data, viewing geopolitical risks as contained for now.
What’s driving the Dow’s best start to the year since 2003?
Sustained buying in large-cap stocks, optimism around economic resilience, and easing concerns over near-term disruptions are supporting the rally.
Why did energy stocks fall even as oil-related news emerged?
Energy shares likely saw profit-taking after Monday’s gains, while investors assessed longer-term implications rather than reacting immediately to headlines.
Which global markets are benefiting from the risk-on sentiment?
Asian markets like Japan, Singapore, and South Korea hit record highs, while European equities such as the FTSE 100 also posted fresh records.
What key events should investors watch next?
Upcoming employment data, including Wednesday’s labor reports and Friday’s U.S. jobs numbers, which could influence rate expectations and market direction.
