Surging financial shares have helping lift the Dow Jones Industrial Average to an all-time peak, while energy firms jumped after a US military strike captured Venezuelan President Nicolas Maduro.
Investors bet Washington's move against Venezuela's leadership would allow US firms access to the world's largest oil reserves. US President Donald Trump's administration plans to meet with executives from US oil companies this week to discuss boosting Venezuelan production.
The S&P 500 energy index rose 2.7 per cent to its highest since March 2025, with heavyweights Exxon Mobil and Chevron both surging.
Weapons manufacturers also advanced after Washington's military action. Lockheed Martin and General Dynamics climbed, while the S&P 500 aerospace and defence index rose to a record high.
The S&P 500 climbed 0.64 per cent to end the session at 6,902.05 points.
Heavy new year trading
The Nasdaq gained 0.69 per cent to 23,395.82 points, while the Dow rose 1.23 per cent to 48,977.18 points. Volume on US exchanges was heavy, with 19.1 billion shares traded, far exceeding the average of 15.9 billion shares over the previous 20 sessions.
The S&P 500 financials index jumped 2.2 per cent as investors looked to upcoming quarterly reports.
Wall Street's main indexes posted double-digit gains in 2025 for the third consecutive year, a run last seen in 2021. Data showed US 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.
Reuters
