S&P 500, Nasdaq Futures Edge Higher As Markets Weigh Venezuela Shock — Strategist Sees Limited Oil Fallout
Overnight trading was subdued, with attention split between geopolitical news and upcoming economic data.
- Futures traded mostly higher overnight as investors balanced geopolitical news with economic data ahead.
- Oil prices showed little follow-through despite developments in Venezuela.
- Market focus is shifting toward incoming macro signals, including manufacturing data and auto sales.
U.S. stock futures were mixed Sunday night, with the S&P 500 and Nasdaq 100 inching higher. In contrast, Dow futures slipped, as markets digested the weekend’s developments in Venezuela and looked ahead to key economic data in the first full trading week of the year.
At 8:40 p.m. ET, S&P 500 futures were up 7.75 points, or 0.1%, while Nasdaq 100 futures gained 78.75 points, or 0.3%. Dow Jones Industrial Average futures were down about 22 points, signaling a flat to slightly lower open.
Markets Weigh Venezuela Fallout
The developments follow U.S. action in Venezuela over the weekend that led to the arrest of President Nicolas Maduro and his wife, Cilia Flores. The two were flown to New York, where they now face charges that include conspiring to commit narco-terrorism. U.S. President Donald Trump said on Saturday that the country would place Venezuela under temporary American control.
Secretary of State Marco Rubio later said Washington would use leverage to meet policy goals, while he did not mention that the U.S. would govern the country directly.
Macro strategist Jim Bianco said in a post on X that the immediate market reaction may be limited. He said the “spigot in Venezuela waiting to be opened to flood the world with crude oil and lower its price has been broken for a while” and will take several years to fix.
Bianco added that Venezuela’s official statistics show oil production is down 71% from its 1998 peak, with sustainable capacity of about 1 million barrels per day, which he said is roughly where output stands now. Bianco added that while Venezuela has economic potential after 2030, little is likely to change in the near term to impact global markets.
The SPDR S&P 500 ETF Trust (SPY) rose 0.2%, while the Invesco QQQ Trust (QQQ) slipped 0.2%. The SPDR Dow Jones Industrial Average ETF Trust (DIA) climbed 0.6%.
Among the catalysts for the day are the ISM manufacturing index and U.S. auto sales data.
Oil Stalls As Gold Gains
In commodities, WTI crude futures were choppy and last up 0.1% at $57.36 a barrel, as markets assessed the impact of U.S. intervention in Venezuela alongside an OPEC+ decision on Sunday to keep oil output unchanged.
Gold rose about 1% to $4,371.29. The 10-year U.S. Treasury yield was last up about 0.2 basis points at 4.187%, while the U.S. dollar index gained 0.1% to 98.55, extending its advance for a fifth straight session.
Asian Markets Open Higher
Asian stocks opened higher on Monday as investors largely looked past the developments in Venezuela and shifted their focus to upcoming economic data. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%.
Japan’s Nikkei 225 surged 2.5% to its highest level in two months, while South Korea’s Kospi climbed 2% to a fresh record high.
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