US stocks closed higher on Monday, with the Dow Jones Industrial Average climbing to an intraday record of 49,209.95. Markets appeared to look past geopolitical risks following US military action in Venezuela, as investors bet the situation would not escalate into a broader, market-disrupting conflict.
Geopolitical developments dominated market attention. Over the weekend, US forces launched a surprise operation that resulted in the capture of Venezuelan leader Nicolás Maduro, sharply escalating global political tensions. US President Donald Trump said on Saturday that the United States would “take control” of Venezuela “until a safe, orderly, and responsible transition can be achieved.”
Evercore ISI policy analyst Matthew Aks wrote in a note that while the event is significant geopolitically, it is unlikely to become a major driver of market volatility in the near term. He added that Trump has historically been reluctant to engage in large-scale ground interventions similar to the Iraq or Afghanistan wars.
The S&P 500 energy sector surged 2.7%, with heavyweight stocks Exxon Mobil and Chevron posting strong gains. Defense stocks also moved higher following the US military action. Shares of Lockheed Martin and General Dynamics rose around 3%, lifting the S&P 500 aerospace and defense index to a record high.
On the economic front, data showed US manufacturing activity contracted more than expected in December, marking the tenth consecutive month of contraction. Investor focus now turns to Friday’s US non-farm payrolls report, which could provide key insight into the Federal Reserve’s monetary policy outlook for 2026.
US Stocks
Most major technology stocks finished higher. Tesla jumped 3.10%, Amazon rose 2.9%, Meta gained 1.29%, and Alphabet advanced 0.44%. Microsoft slipped 0.02%, while Nvidia fell 0.39% and Apple declined 1.38%.
Chinese stocks listed in the US mostly advanced, with the Nasdaq Golden Dragon China Index up 0.49%. KE Holdings surged more than 6%, while Bilibili and Tencent Music climbed over 3%. Full Truck Alliance, Chagee, Kingsoft Cloud, and Futu Holdings posted solid gains. Meanwhile, NIO dropped more than 5%, and GDS Holdings, Yum China, XPeng, and New Oriental declined over 1%.
Market Snapshot:
- Dow Jones: +594.79 points (+1.23%) to 48,977.18
- Nasdaq: +160.19 points (+0.69%) to 23,395.82
- S&P 500: +43.58 points (+0.64%) to 6,902.05
Hong Kong Stocks
Hong Kong equities opened higher and extended gains through midday. Tech stocks were mostly higher, with NetEase rising over 4%, Bilibili and Kuaishou up more than 3%, and JD.com, Baidu, and Tencent gaining over 2%. Xiaomi slipped more than 1%.
Chinese brokerage stocks rallied sharply, led by Guotai Haitong, which surged over 7%. Guojin Securities said undervalued brokerages could see catch-up rallies during the seasonal spring rebound, especially firms with high A-H share premiums and M&A themes.
Non-ferrous metals stocks outperformed, with Zijin Mining climbing over 7%. Bank of America’s metals research head Michael Widmer said gold remains a key portfolio hedge this year and forecast average gold prices of USD 4,538 per ounce in 2026. Historical data suggests silver could surge to a peak range of USD 135 to USD 309 per ounce.
Market Snapshot:
- Hang Seng Index: +1.78% to 26,815.69
- Hang Seng Tech Index: +2.21% to 5,868.24
- China Enterprises Index: +1.61% to 9,295.88
A50
Mainland China’s A-share markets were mixed in morning trading. The Shanghai Composite rose 1.14%, the Shenzhen Component gained 0.81%, while the ChiNext Index slipped 0.04%. The Beijing Stock Exchange 50 Index advanced 0.86%. Total turnover across Shanghai, Shenzhen, and Beijing reached RMB 1.8 trillion, up RMB 147.2 billion from the previous session, with more than 3,600 stocks advancing.
Sector-wise, paper, commercial aerospace, non-ferrous metals, insurance, securities, semiconductors, and solar equipment stocks led gains. AI hardware themes such as CPO and high-speed copper connections underperformed.
Market Snapshot:
- Shanghai Composite: +1.14% to 4,069.38
- Shenzhen Component: +0.81% to 13,940.24
- ChiNext Index: −0.04% to 3,293.18
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