Wall Street closed higher, driven by strong gains in financial stocks that helped the Dow Jones Industrial Average reach a new record level, while energy shares posted notable gains following U.S. military action in Venezuela.
The rise in the energy sector came amid expectations that the U.S. move could open broader opportunities for American companies to access the world’s largest oil reserves, as markets await anticipated talks between the U.S. administration and oil company executives on ways to boost Venezuelan production. The energy index within the S&P 500 climbed to its highest level in months, supported by advances in major sector stocks.
Defense industry stocks also benefited from the geopolitical developments, posting gains that pushed the aerospace and defense index to a record high, as investor concerns about prolonged military involvement eased.
Meanwhile, some technology stocks faced limited pressure, while Tesla shares rebounded after a series of losses. Investors continued to rotate toward traditional sectors, led by banks, ahead of the upcoming earnings season.
Major U.S. indices recorded broad based gains, supported by higher trading volumes, as shares of large banks surged to new historical highs amid expectations of profit growth in the financial sector during the final quarter of the year.
On the economic data front, indicators showed continued weakness in U.S. manufacturing activity, increasing market focus on the highly anticipated monthly jobs report, which could influence monetary policy expectations in the coming period. Markets are currently pricing in the possibility of interest rate cuts later this year.
In addition, cryptocurrency related stocks posted strong gains in tandem with Bitcoin’s rise, supported by improved risk appetite and positive upgrades from major financial institutions for several companies in the sector.
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