U.S oil stocks surge after Maduro’s ouster in Venezuela

Abdullateef Fowewe

Wall Street kicked off the post-holiday trading week with a bang on Monday, as U.S. oil majors rocketed higher following the U.S.-led deposition of Venezuela’s Nicolas Maduro.

Chevron and ConocoPhillips each jumped more than 4% in early trading, while ExxonMobil climbed 2.1%, buoying broader indexes amid anticipation for key jobs data, according to US Guardian report.

The Dow Jones Industrial Average rose 1.1% to 48,903.76, the S&P 500 gained 0.6% to 6,895.94, and the Nasdaq Composite advanced 0.6% to 23,381.70.

Unlike the stocks, crude oil prices barely budged.

Analysts note that any surge in Venezuelan output from promised U.S. investments will take years.

President Donald Trump vowed rapid action, declaring after the military operation and Maduro’s arrest that U.S. companies will “go in, spend billions of dollars, fix the badly broken infrastructure.”

“Typically, Wall Street does not really respond much to military confrontations, especially on such a small scale as this that will not likely result in an impact to the global economy,” said Sam Stovall of CFRA Research.

He added, “People are sort of tiptoeing back into equities and waiting to see what will happen with the Federal Reserve, as well as corporate profits.”