Wall Street gains ground as crude prices and oil company shares rise after the US raid on Venezuela
NEW YORK (AP) — Stocks rose in morning trading on Wall Street Monday to kick off the first full week of the new year, led by energy and technology companies.
The S&P 500 rose 0.6%. The Dow Jones Industrial Average rose 504 points, or 1%, as of 10:01 a.m. Eastern. The Nasdaq composite rose 0.6%.
Markets in Asia and Europe were mostly higher.
Energy companies and the oil market were a key focus after U.S. forces captured Venezuelan President Nicolás Maduro in a weekend raid. The price of U.S. crude jumped 1.3% to $58.07 per barrel. The price of Brent crude, the international standard, rose 1.1% to $61.43 per barrel.
President Donald Trump has floated a plan for U.S. oil companies to help rebuild Venezuela’s oil industry. Chevron surged 4.3% and Exxon Mobil rose 1.1% for some of the strongest gains in the market.
After years of neglect and international sanctions, Venezuela’s oil industry is in disrepair. It could take years and major investments before production can increase dramatically. But some analysts expect its current output of about 1.1 million barrels a day could double or triple fairly quickly.
Wall Street is also watching the technology sector as the industry kicks off its annual CES trade show in Las Vegas. Nvidia rose 0.8% and Intel jumped 2.1%.
Gold gained 2.5% and the price of silver soared 6.9%. Such assets are often considered safe havens in times of geopolitical turmoil.
Treasury yields held relatively steady in the bond market. The yield on the 10-year Treasury fell to 4.18% from 4.19% late Friday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, fell to 3.47% from 3.48% late Friday.
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AP business writer Elaine Kurtenbach and AP video journalist Mayuko Ono contributed to this report.