Stock Rally Gathers Pace as Markets Brush Off Venezuela Concerns

Global equities surged, building on last year’s powerful, AI-driven rally as investors doubled down on technology stocks, largely brushing aside rising geopolitical tensions tied to the US military action in Venezuela. Risk appetite remained strong, with market participants continuing to favor growth-oriented sectors despite fresh political uncertainty.

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Stocks across Asia climbed to record levels, led by semiconductor heavyweights such as Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. An index tracking emerging-market equities was on track to reach a new all-time high, while equity-index futures pointed to further gains when trading opens in the US and Europe.

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Safe-haven assets also saw notable moves. Silver jumped as much as 4.8%, while gold rose around 2% following the US decision to remove Venezuelan President Nicolás Maduro over the weekend. Oil prices were volatile as traders weighed concerns over potential disruptions to global crude supply. At the same time, the US dollar strengthened as investors priced in higher geopolitical risk.

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The upbeat tone in equity markets followed a strong start to the year in Asia, where stocks posted their best opening since 2012. Optimism has been fueled by expectations that sustained corporate spending on technology particularly artificial intelligence will translate into stronger earnings growth. For now, the prevailing risk-on mood appears resilient, with investors largely dismissing fears that geopolitical tensions could derail a rally that delivered global equities their biggest annual gain in eight years.

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“AI remains the single most influential force in markets right now,” said Charu Chanana, chief investment strategist at Saxo Markets, in a Television interview. “Optimism around technology continues to outweigh all other narratives, even when geopolitical risks rise.”

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Oil markets offered a more cautious signal. Crude prices swung back and forth, suggesting that the global energy market is initially absorbing the Venezuela developments without panic. Brent crude fell as much as 1.2% at the open, recovered those losses, and then drifted lower again as traders reassessed the outlook.

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Uncertainty still hangs over the next steps in Venezuela. Acting President Delcy Rodríguez struck a more measured tone toward Washington, calling for cooperation with the US after initially reacting angrily to Maduro’s capture. Her remarks hinted at a possible effort to stabilize relations with the Trump administration.

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“Geopolitical noise tends to fade quickly,” wrote Dilin Wu, a strategist at Pepperstone Group Ltd. “The sudden escalation in Venezuela failed to meaningfully spill over into global risk assets, reinforcing how markets often price in geopolitical shocks briefly before moving on.”

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President Donald Trump added to the debate by saying the US needs “total access” to Venezuela, suggesting American oil companies could invest billions of dollars to rebuild the country’s deteriorating energy infrastructure.

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Despite the military action, people familiar with the situation said Venezuela’s oil facilities were not damaged. Major assets, including the Jose export terminal, the Amuay refinery, and production sites in the Orinoco Belt, remain operational.

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For investors, a key question is whether the situation increases demand for US Treasurys as a safe haven or instead dampens appetite by stoking inflation concerns or adding to worries about US fiscal policy.

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Marko Papic, chief strategist at BCA Research, cautioned against overreacting as markets reopen. He noted that a large-scale deployment of ground troops appears unlikely, meaning government spending should remain unaffected and bond yields are unlikely to rise as a result.

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On Monday, the benchmark 10-year US Treasury yield edged down one basis point to 4.18%, signaling steady demand for government debt. Elsewhere in commodities, copper prices climbed toward a record high amid speculation that global supply could tighten further.

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On the policy front, Federal Reserve Bank of Philadelphia President Anna Paulson said limited additional interest-rate cuts could be appropriate later in 2026, provided the economic outlook remains favorable. Her comments reinforced the Fed’s data-dependent stance as investors look ahead.

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A busy slate of economic releases will also influence markets in the days ahead. Alongside the December employment report, the US Bureau of Labor Statistics is set to publish November data on job openings, quits, and layoffs. The Institute for Supply Management’s December surveys covering manufacturing and services will offer further insight into labor conditions.

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Toward the end of the week, investors will turn their attention to October housing starts data and the University of Michigan’s preliminary January consumer sentiment reading, both of which could help shape expectations for growth and monetary policy in the months ahead.

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