Stocks, Gold Prices Rise After US Attack on Venezuela

Did you expect the markets to have a good start to the new year? Better to buckle up.

On Monday, the first day of trading after the US invasion of Venezuela and the capture of President Nicolás Maduro, stocks rallied – and gold was found. This volatility shows how much uncertainty investors have to manage as they try to gauge the outcome of the stock market and the broader economy.

Often, markets react negatively to global shocks, especially those involving oil-producing countries like Venezuela. But the Dow Jones industrial average hit record highs early Monday, and other major indexes also rose, boosted by shares of energy and defense companies.

In this case, although defense ETFs and shares of contractors such as Lockheed Martin rose on Monday, traders did not seem to see Maduro’s capture as the beginning of military intervention with Venezuela, said Rob Haworth, director of senior investment strategies at US Bank Asset Management Group.

“It’s not the soldiers on the ground, it’s not always [campaign]. It was a surgical strike, now it continues,” he said.

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Instead of worrying about Venezuela, analysts are focusing on the outlook for US interest rates and consumer spending, both of which offer reasons for optimism.

“I think the markets are looking good and have passed the strike,” Haworth said. “Frankly, the markets are still focused on earnings,” he adds, and the possibility of lower interest rates and tax cuts putting more money in the pockets of Americans (and giving companies more money to expand).

The energy sector took a hit at press time on Monday, following a Saturday news conference in which President Donald Trump urged US oil companies to “spend billions of dollars” in Venezuela.

Will the attack on Venezuela affect oil and gas prices?

Oil producers like Chevron and Exxon, refiners like Valero and service providers like Halliburton all met on Monday. Shares of Chevron, the only American company currently operating in Venezuela, jumped nearly 10% at the same time.

However, the impact on the price of oil itself was not very large. Benchmark spot oil prices were volatile over the weekend and rose slightly on Monday.

Although Venezuela has the largest proven oil reserves in the world, extracting them would require time and money, according to experts.

“Sanctions, chronic disinvestment and crumbling infrastructure have reduced productivity significantly,” analysts at Janus Henderson Investors wrote in a research note on Monday.

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There are reasons why American oil companies may be wary of making big commitments. US sanctions on Venezuelan oil remain, for one thing, and oil giants Exxon and ConocoPhillips lost billions when their equipment and assets were seized by the Venezuelan government in 2007.

“Not many companies will rush to an area where there is no stability,” one oil executive told me New York Times.

This means that people expecting lower prices at the tap or relief from rising utility costs are likely to be disappointed.

“The impact on US gasoline prices may ultimately be limited,” Patrick De Haan, head of gasoline analysis at GasBuddy, said in a note on Monday.

Volatility continues to weigh on gold

In contrast to the muted reaction to oil prices, gold rose on Monday. The spot price of an ounce of the precious metal has rebounded after falling in the final days of 2025 due to a combination of profit-taking and higher margin requirements for leveraged investors.

Monday’s rebound erased much of the slack gold held after reaching a record high of $4,549.71 on December 26.

Gold is often a safe-haven asset that investors buy in times of uncertainty, which may reflect some of the gains, according to Haworth. (Continued tax volatility since Trump took office for a second term is one reason gold has jumped 65% by 2025 despite strong stock gains.)

“We need a potential hedge against future risks if the economy goes down, [and investors] they also want a certain measure of security,” he said.

What investors should do after the US strikes on Venezuela

While political shocks like the surprise attack on Venezuela can scare investors, Haworth says people shouldn’t make any haste with their portfolios.

“Stay on track, continue to focus on global growth,” he said.

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Events like this weekend’s are a good reminder that while the US may be the world’s largest economy, it does not function independently of the wider and ever-evolving global economy.

Along with US equities, American investors can do well to balance growth and risk with a combination of international investments and fixed income.

“Look at global diversification,” Haworth recommends, adding that today’s interest rates are high enough that yields on low-risk assets can make a significant contribution to the nest egg as those assets help manage the portfolio’s risk from exposure to volatile global stocks.

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