US STOCKS-Dow hits record, energy stocks end higher after US strikes Venezuela

By Noel Randewich

Jan 5 (Reuters) - Wall Street ended higher on Monday, with the Dow Jones Industrial Average hitting an all-time peak thanks to surging financial shares, while energy firms jumped after a U.S. military strike that captured Venezuelan President Nicolas Maduro.

Investors bet Washington's move against Venezuela's leadership would allow U.S. firms access to the world's largest oil reserves. President Donald Trump's administration plans to meet with executives from U.S. oil companies this week to discuss boosting Venezuelan production.

The S&P 500 energy index .SPNY rose to its highest since March 2025, with heavyweights Exxon Mobil XOM.N and Chevron CVX.N both surging.

Weapons manufacturers also advanced after Washington's military action. Lockheed Martin LMT.N and General Dynamics GD.N climbed, while the S&P 500 aerospace and defense index .SPLRCAERO rose to a record high.

"Energy stocks are really benefiting from the expectation that President Trump is intending to send them in to do more investment in Venezuela and ultimately make more money for themselves," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.

"The lack of permanent boots on the ground, the fact that we're not permanently engaged, means the broader equity markets are able to set aside what might have been fears of a prolonged engagement," Haworth said.

Tesla TSLA.O climbed after seven straight sessions of losses. Nvidia NVDA.O and Apple AAPL.O dipped.

According to preliminary data, the S&P 500 .SPX gained 43.67 points, or 0.64%, to end at 6,902.14 points, while the Nasdaq Composite .IXIC gained 161.66 points, or 0.70%, to 23,397.29. The Dow Jones Industrial Average .DJI rose 595.07 points, or 1.23%, to 48,977.46.

The S&P 500 financials index .SPSY jumped as investors looked to upcoming quarterly reports. Analysts on average see S&P 500 financial companies growing their earnings 6.7% year-over-year in the December quarter.

Goldman Sachs GS.N and JPMorgan Chase JPM.N hit record highs.

"The mood has been favoring financial stocks in recent days and as people look beyond tech, this is a sector many are choosing to look toward," said Steve Sosnick, chief market analyst at Interactive Brokers.

Wall Street's main indexes posted double-digit gains in 2025 for the third consecutive year, a run last seen in 2021.

Data showed U.S. manufacturing contracted more than expected in December, extending a 10-month slump.

The spotlight will now be on the monthly nonfarm payrolls on Friday, which could influence the Federal Reserve's monetary policy in 2026.

Markets are pricing in about 60 basis points of interest rate easing this year, according to LSEG.

Cryptocurrency-linked shares advanced as bitcoin BTC= hit a more than three-week high. Strategy MSTR.O, formerly MicroStrategy and Coinbase COIN.O gained. Goldman Sachs upgraded Coinbase to "buy" from "neutral".