S&P 500: Energy Sector Leads Rally as US Stock Market Absorbs Venezuela News

Stock Futures Mixed as Energy Sector Surges on Venezuela Developments

Stock index futures are pointing toward a steady, but mixed opening on Monday. The broad-based S&P 500 Index futures contract is edging higher during the pre-market session, boosted by the energy sector. Crude oil stocks were sharply higher on the idea the companies would benefit from rebuilding Venezuela’s oil infrastructure. The notion comes after the U.S. strike on Venezuela and the capture of President Nicolas Maduro over the weekend.

At 13:34 GMT, blue chip Dow Futures are trading 48601.00, down 15.00 or -0.03%. Benchmark S&P 500 Index Futures are at 6920.75, up 20.25 or +0.29% and tech-heavy Nasdaq-100 Index futures are trading 25559.25, up 174.00 or +0.69%.

Energy Stocks and ETFs Lead Pre-Market Gains

The energy sector will be in the spotlight on Monday with the focus across the board including stocks and ETFs. Early gainers include Chevron, which surged more than 6% higher. Exxon Mobil advanced more than 2%. Halliburton and SLB jumped 7% each. The State Street Energy Select Sector ETF (XLE) gained more than 4% in the pre-market. The rallies are expected to extend into the cash market session.

Defense Contractors Rally on Trump’s Military Action

Pre-market gains weren’t limited to the energy sector either as shares of major defense companies General Dynamics and Lockheed Martin also posted strong gains. Each stock is benefiting from the notion that quick military action from President Trump could be a major part of his policy for dealing with geopolitical issues that arise.

Friday’s Jobs Report Looms Large for Fed Rate Cut Expectations

While the events out of Venezuela are grabbing the early headlines, investors are also eyeing economic data that could have a more broad-based impact on the economy and stock market.

Friday’s U.S. Non-Farm Payrolls report will be the first timely update on the condition of the U.S. labor market since December, when the Federal Reserve cut interest rates for a third time in 2025, and since it projected just one additional rate cut in 2026. The jobs report at that time showed the monthly unemployment rate ticked up to 4.6% in November.

The stock market thinks the Fed is going to continue cutting rates, primarily due to the labor market, but any hint of a rebound in the jobs market will dampen the chances of that taking place.

Technical Outlook: S&P 500 Holds Key Support, Eyes Record High

Technically, the S&P 500 Index (SPX) is in an uptrend, despite losing ground last week. Friday’s price action shows investors respected 50% level support at 6833.10 and the major 50-day moving average support at 6805.01.

We’re expecting modest gains early but overcoming a pivot at 6885.00 could fuel an acceleration to the upside with the record high at 6945.77 the next major objective.

More Information in our Economic Calendar.