Dow hits record high, jumping almost 600 points after U.S.–Venezuela action sparks market rally

U.S. stocks climbed on Monday despite Washington’s military action in Venezuela and the capture of President Nicolas Maduro, as oil prices rose and investors bet the move would not escalate into broader geopolitical tensions that could unsettle markets.

The Dow Jones Industrial Average surged 594.79 points, or 1.23%, to close at a record 48,977.18, hitting a new all-time high during the session. The S&P 500 gained 0.64% to finish at 6,902.05, while the Nasdaq Composite advanced 0.69% to end at 23,395.82.

Energy stocks led the rally on expectations that companies would benefit from rebuilding Venezuela’s oil infrastructure. Chevron jumped 5.1%, seen as a major beneficiary due to its existing footprint in the country, which holds the world’s largest proven oil reserves. Exxon Mobil added 2.2%. Oilfield services firms poised to support reconstruction also rallied, with Halliburton rising 7.8% and SLB climbing nearly 9%. The Energy Select Sector SPDR Fund (XLE) gained almost 3%.

Despite the equity rally, investors also increased exposure to safe-haven assets. Gold futures rose 2.8%, marking their strongest daily gain since October 20, while Bitcoin traded above $94,000. Financial stocks also moved higher, reflecting optimism about U.S. economic strength, with Goldman Sachs and U.S. Bancorp advancing 3.7% and 2.9%, respectively.

Following the U.S. military operation, Maduro and his wife, Cilia Flores, were flown to New York to face charges including narco-terrorism conspiracy. President Donald Trump said the U.S. would oversee Venezuela “until such time as we can do a safe, proper and judicious transition.”

Defense stocks also saw modest gains, with General Dynamics rising 3.5% and Lockheed Martin up 2.9%, as the swift military action reinforced expectations that rapid strikes would remain a core element of U.S. foreign policy.