The three major US stock indices closed higher on Monday, with the Dow Jones Industrial Average reaching an intraday peak of 49,209.95 points, setting a new intraday record. US markets kicked off the first full trading week of 2026 on a positive note, led by gains in technology and energy stocks. Despite the ousting of Venezuelan President Maduro over the weekend, traders showed little concern over geopolitical risks. Christopher Harvey, Head of Equity and Portfolio Strategy at CIBC Capital Markets, believes that due to Venezuela's limited economic scale and isolated state, the arrest of Maduro will have minimal spillover effects on US markets. However, he also noted that recent events signal greater macroeconomic uncertainty for 2026. This supports his team's expectation of a "risk-off sentiment" emerging in the first half of the year, prompting him to advise clients to tilt their portfolios towards high-quality or low-volatility stocks. Investors are awaiting a series of macroeconomic data releases in the coming days, with Friday's December non-farm payrolls report being the most critical.
At market close, the Dow Jones Industrial Average rose by 594.79 points, or 1.23%, to 48,977.18; the Nasdaq Composite gained 160.19 points, or 0.69%, to 23,395.82; and the S&P 500 increased by 43.58 points, or 0.64%, to 6,902.05. Chevron (CVX.US) surged 5.2%, nearing a new high during the session. Tesla (TSLA.US) climbed 3%, while Micron Technology (MU.US) fell 1%, and Alcoa (AA.US) jumped 8.6%. The Nasdaq Golden Dragon China Index closed up 0.5%, with Beike (BEKE.US) rising over 6%.
Germany's DAX 30 index advanced by 339.16 points, or 1.38%, to 24,862.99; the UK's FTSE 100 increased by 48.71 points, or 0.49%, to 9,999.85; France's CAC 40 edged up 16.29 points, or 0.20%, to 8,211.50; the Euro Stoxx 50 rose 74.87 points, or 1.28%, to 5,925.25; Spain's IBEX 35 gained 123.09 points, or 0.70%, to 17,615.49; and Italy's FTSE MIB climbed 484.47 points, or 1.07%, to 45,858.50.
The US Dollar Index, which measures the dollar against a basket of six major currencies, fell 0.16% to settle at 98.267. By the close of New York forex trading, one euro traded at $1.1727, up from $1.1724 the previous session; one pound bought $1.3543, up from $1.3456. One dollar bought 156.23 Japanese yen, down from 156.86; it traded for 0.7915 Swiss francs, down from 0.7920; it fetched 1.3757 Canadian dollars, up from 1.3733; and it exchanged for 9.1749 Swedish krona, down from 9.2157.
Bitcoin surpassed the $94,000 mark, gaining over 2.8% for the day; Ethereum rose more than 2.9% to $3,237.8.
Spot gold surged over 2.6% to $4,449.02, having reached an intraday high above $4,455; silver broke through $76.
Copper prices broke through $13,000 per tonne for the first time on Monday, driven by a strike at a Chilean copper mine, market expectations of a supply deficit, and low inventories in London Metal Exchange (LME) certified warehouses, intensifying supply concerns. Traders noted that the strike at Capstone Copper's Mantoverde copper-gold mine in northern Chile further reinforced the supply shortage narrative. Although the mine's projected output of 29,000 to 32,000 tonnes represents only a small fraction of the estimated 24 million tonnes of global mined copper production this year, it still exacerbated market fears of insufficient supply. UBS analysts stated, "We expect copper demand growth of about 3% in 2026, while refined copper supply growth will be less than 1%, leading to a deficit of 300,000 to 400,000 tonnes, potentially widening to around 500,000 tonnes in 2027."
The price of West Texas Intermediate crude for February delivery rose by $1.00 to settle at $58.32 per barrel, a gain of 1.74%; Brent crude for March delivery increased by $1.01 to close at $61.76 per barrel, up 1.66%.
US manufacturing remains deep in contraction territory as the ISM index fell for the tenth consecutive month. American manufacturing activity experienced its sharpest contraction since 2024 in December, capping a difficult year for US factories. The ISM Manufacturing PMI for December registered 47.9, marking the tenth consecutive month below 50, indicating the sector is in contraction. The decline reflects producers drawing down raw material inventories at the fastest pace since October 2024, suggesting many firms are relying on existing stocks to meet weak demand. A bright spot in the report was that customer inventories fell at the fastest rate since October 2022, indicating factory orders and production could strengthen in the coming months. Nonetheless, overall economic uncertainty stemming from tariffs and the Trump administration's evolving trade policies during its first year has proven challenging for many companies weighing expansion plans.
Tax cut benefits offset geopolitical risks as experts suggest the US may enter a period of steady trend growth. After a year of policy shocks, the US economy is poised to benefit from the Trump tax cuts, keeping the economic expansion on track for 2026. Economists state that due to the landmark bill signed by Trump, US taxpayers will receive larger refunds in the first half of the year, with an estimated total incremental amount between $30 billion and $100 billion. Incentives encouraging business investment in plants and equipment are also expected to boost growth, while lower borrowing costs and more stable trade policies should provide additional support. However, forecasters advise caution remains necessary. The US action against Venezuela also highlights the potential for geopolitical instability. Olu Sonola, Head of US Economic Research at Fitch, said, "2026 looks to be a year of decent performance—neither a boom nor a bust, just steady trend growth." Federal Reserve officials appeared slightly more optimistic than Wall Street at last month's meeting, projecting GDP growth of 2.3% this year. Minutes from the meeting released last week showed Fed staff view fiscal policy, easier financial conditions, and diminishing tariff impacts as growth drivers through 2028.
The US Department of Energy announced $2.7 billion in awards to enhance uranium enrichment capacity. On Monday, the US Department of Energy announced it will issue awards totaling $2.7 billion to three companies to bolster domestic uranium enrichment efforts over the next decade, aiming to reduce US reliance on Russian supplies. In a statement, the department said American Centrifuge Operating (ACO), General Materials, and Orano Federal Services received the awards. The contracts will require the companies to meet specific milestones to provide enrichment services for low-enriched uranium and high-assay low-enriched uranium for existing nuclear power plants and new small modular reactors.
Tesla (TSLA.US) CEO Elon Musk announced that Neuralink is advancing towards mass production, aiming to aid patients with paralysis and neurological disorders. According to a post by Musk on the social media platform "X," his company Neuralink will begin "mass production" of its brain-computer interface implant device in 2026. The implant is designed to connect the brain to a computer by reading electrical signals from neurons and translating them into digital commands. The goal is to enable users to control devices with their thoughts or restore functions lost due to disease or injury. According to Neuralink's website, electrodes are placed near neurons in the brain to "detect action potentials," allowing the implant to "decode the information represented by those cells."
The US Secretary of Energy will meet with oil executives, focusing on a Venezuelan energy "revival." According to an informed source, US Secretary of Energy Wright plans to meet with oil industry executives this week to discuss how to revitalize Venezuela's energy sector following the "detention" of President Maduro. This week, Wright will attend the "Goldman Sachs Energy, Clean Technology & Utilities Conference" in Miami, where executives from Chevron (CVX.US), ConocoPhillips (COP.US), and other companies will also be present. Chevron is currently the only major oil company still operating in Venezuela. US President Trump has previously vowed to "revive" Venezuela's oil industry; the country, which possesses the world's largest crude reserves, has seen production plummet due to years of underinvestment and mismanagement. Trump estimates this process will require billions of dollars, but it remains unclear whether foreign companies will be willing to undertake such a task and the associated risks.
Qualcomm expands its PC chip portfolio, with a new processor targeting mid-range laptops. Qualcomm (QCOM.US), the world's largest mobile chipmaker, stated it is furthering its push into the personal computer central processor market. The company's newly launched X2 Plus processor is a streamlined version of existing products, designed to be a key component in more affordable laptops. Qualcomm said the processor will come in two versions: one with 10 computing cores and another with 6. These cores utilize the latest third-generation Oryon architecture. According to Qualcomm, a key selling point is a built-in powerful Neural Processing Unit (NPU) that can speed up responses from AI software while avoiding rapid battery drain. The company has already launched the Snapdragon X2 Elite and Elite Extreme chips, which are typically used in laptops priced above $1,000.
UBS Group: Lowered the price target for Oracle (ORCL.US) from $325 to $280.
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