“Investors are pricing in the upside of geopolitical repositioning.”
NEW YORK — U.S. stocks surged to all-time highs Friday as Wall Street brushed aside a week that included military operations in Venezuela, threats to invade a NATO ally, Russian nuclear-capable missile strikes on Ukraine, and continued uncertainty over tariffs.
The S&P 500 rose 0.6% to a stock market record high, while the Dow Jones Industrial Average also notched a new peak. The Nasdaq jumped 1%. Small-cap stocks hit records as gains broadened beyond technology names.
“The market is incredibly resilient,” said one strategist at a major investment bank. “Venezuela? That’s oil access. Greenland? Rare earth minerals. Russia launching hypersonic missiles? Defense spending. It’s all bullish if you know where to look.”
Venezuela Operation ‘Priced In’
Energy stocks extended gains following the U.S. capture of Venezuelan leader Nicolás Maduro, with analysts pointing to potential access to the country’s vast oil reserves.
“The market isn’t concerned about the geopolitical fallout,” one analyst explained. “It’s focused on the streamlined ownership structures that could emerge.”
Chevron and Exxon Mobil both rose, while defense contractors surged on President Trump’s plans to increase military spending. Analysts noted that the same developments driving diplomatic alarm in Europe were creating opportunities for investors.
“European leaders are calling emergency meetings,” the analyst said. “Wall Street is calling it a buying opportunity.”
Greenland Threats ‘Manageable’
Markets showed little reaction to White House statements that military force remains an option for acquiring Greenland, despite warnings from Denmark that such action would end NATO.
“NATO ending would be significant,” one portfolio manager acknowledged. “But we’ve already priced in alliance restructuring. The rare earth deposits in Greenland are worth the volatility.”
The Supreme Court’s decision not to rule on Trump’s tariff authority also failed to rattle investors, who had expected uncertainty to continue.
“No decision is still a decision,” an economist noted. “Markets hate uncertainty, but they’ve learned to love this particular uncertainty.”
Jobs Report Seals Rate Bets
Friday’s employment report showed the economy added 50,000 jobs in December, below expectations of 70,000. Traders interpreted the weak number as confirmation the Federal Reserve will hold rates steady, which they also interpreted as bullish.
“Weak jobs means no rate hikes,” the strategist explained. “Strong jobs would mean economic resilience. Either way, you buy.”
Looking ahead, analysts said the bull market shows no signs of slowing, regardless of developments.
“This is an all-gas, no-brakes environment,” one strategist said. “The AI supercycle, fiscal stimulus, potential Fed cuts, and now strategic resource acquisition. We see upside across every scenario.”
The S&P 500 has risen more than 1% in the first full trading week of 2026.
Markets closed for the weekend.
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