US stocks moved the upside

Washington — Stocks moved mostly higher during trading on Monday, regaining ground following the slump seen during the holiday-interrupted previous week.

The major averages all moved to the upside, with the Dow reaching a new record closing high. The major averages finished the day off their highs of the session but still firmly positive. The Dow jumped 594.79 points or 1.2% to 48,977.18, the Nasdaq advanced 160.19 points or 0.7% to 23,395.82, and the S&P 500 climbed 43.58 points or 0.6% to 6,902.05.

The notable upward move by the Dow partly reflected a sharp increase by shares of Chevron, with the energy giant soaring by 5.1%. Chevron, which is one of the leading private oil companies in Venezuela, surged following a US attack on the country that led to the capture of President Nicolás Maduro.

The price of crude oil also shot up in reaction to the news, contributing to substantial strength among oil service stocks. Reflecting the strength in the sector, the Philadelphia Oil Service Index spiked by 5.5% amid optimism about potential gains from rebuilding Venezuela’s oil infrastructure.

Gold stocks also saw considerable strength, as the price of the precious metal jumped due to its appeal as a safe haven amid increased geopolitical tensions. Financial, airline, and retail stocks also saw significant strength, while utilities and pharmaceutical stocks moved sharply lower.

US stocks moved the upside

On the US economic front, a report released by the Institute for Supply Management showed its reading on US manufacturing activity unexpectedly decreased in the month of December. The ISM said its manufacturing PMI edged down to 47.9 in December after slipping to 48.2 in November, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 48.3.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. While Japan’s Nikkei 225 Index surged by 3%, China’s Shanghai Composite Index jumped by 1.4%. The major European markets also moved to the upside on the day. While the German DAX Index shot up by 1.3%, the UK’s FTSE 100 Index climbed by 0.5%, and the French CAC 40 Index rose by 0.2%.

In the bond market, treasuries regained ground after trending lower over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 2.2 basis points to 4.165%.

Looking Ahead

Amid a relatively quiet day on the US economic front, trading on Tuesday may be impacted by reaction to the latest geopolitical developments.