Key Points
- The Dow Jones Industrial Average hit a new all-time high.
- The rally was led by a surge in energy stocks following the capture of Venezuelan President Nicolás Maduro.
- Chevron’s stock jumped over 5% as investors bet on a new era of investment in Venezuela’s oil industry.
- Federal Reserve Governor Stephen Miran called for more than a full percentage point in rate cuts in 2026.
U.S. stocks were mixed in early trading on Tuesday, but the big story of the week remains the surge in energy stocks. On Monday, the Dow Jones Industrial Average hit a new all-time high, fueled by big gains in oil companies after the U.S. captured Venezuelan President Nicolás Maduro over the weekend.
The stock market is showing modest gains this morning as the major indices continue their upward trend. At 9:53 AM (ET), the S&P 500 is trading at 6,921.23, up 0.28%. Following closely behind, the Nasdaq 100 has risen to 25,466.81, up 0.26%. Meanwhile, the Dow Jones Industrial Average remains at a high level, sitting at 49,034.22.
U.S. President Trump has already called on American energy companies to lead the redevelopment of the nation’s struggling oil sector. This sent Chevron shares up over 5%, while Exxon Mobil gained more than 2%.
However, some analysts are urging caution. They note that Venezuela’s oil industry is in disrepair after years of neglect, and it will take significant time and money to restore production to its former levels. “The country could become a major force in global oil production, but this will take a long time (and cost a ton of money),” one analyst wrote.
Adding to the mix, Federal Reserve Governor Stephen Miran said on Tuesday that the central bank will likely need to cut interest rates by more than a full percentage point in 2026. He argued that the current policy is too restrictive and is hindering economic growth.
For now, traders are looking ahead to the December jobs report, which is due out on Friday. This will be a key indicator of the U.S. economy’s health and will likely influence the Fed’s next move on interest rates.
