Dow Jones futures are set to open on Sunday evening, along with S&P 500 and Nasdaq futures, as investors prepare for a busy and uncertain week ahead. Markets are weighing two major forces at once: a sudden geopolitical shock involving Venezuela and a packed tech calendar led by Nvidia, AMD and Taiwan Semiconductor.
Former U.S. President Donald Trump announced on Saturday that U.S. forces had captured Venezuelan President Nicolás Maduro in a surprise military operation. While the announcement was dramatic, Trump clarified that the existing Venezuelan government structure would remain in place for now. Still, the development adds a fresh layer of risk for global markets, particularly energy stocks and crude oil prices.
At the same time, Wall Street is coming off a difficult final week of 2025, with most major indexes under pressure even as select sectors showed strength. Investors now face a key question: will markets stabilize, or is more volatility ahead?
Market Mood: A Fragile Start to 2026
The broader stock market struggled during the last week of 2025. Major indexes tested important support levels, signaling hesitation among investors.
- The Dow Jones Industrial Average slipped during the week but managed to climb back above a short-term support level on Friday.
- The S&P 500 also fell but recovered slightly by the end of the week.
- The Nasdaq Composite underperformed, failing to regain a key medium-term level.
- Small-cap stocks, tracked by the Russell 2000, showed relative strength by bouncing from support.
Friday’s trading offered a brief sense of relief, but the rebound lacked strong momentum. This suggests investors are still cautious rather than confident.
Trump’s Venezuela Announcement: Why Markets Care
The biggest wildcard heading into the new week is Trump’s announcement regarding Venezuela. According to his statement, Maduro and his wife were captured and transferred to New York, where they will face serious criminal charges. Trump said the U.S. intends to “run” Venezuela temporarily while pushing for a controlled transition.
However, the current power structure remains intact, with Vice President Delcy Rodríguez stepping in as acting leader. Trump also downplayed the role of opposition leader María Corina Machado, despite her recent international recognition.
From a market perspective, the real focus is oil.
Venezuela holds the largest proven oil reserves in the world, but production has collapsed over decades due to mismanagement and lack of investment. Trump openly stated that major U.S. oil companies could enter Venezuela, spend billions repairing infrastructure, and restart production.
If markets believe this could actually happen, it may affect:
- Global oil supply expectations
- Energy stocks
- Inflation outlooks
- Currency and bond markets
That said, such changes would take years, not weeks. For now, the reaction is likely to be emotional and short-term rather than structural.
Oil and Bonds: Early Signals to Watch
Oil prices rose modestly last week, with U.S. crude ending near $57 per barrel. Over the weekend, OPEC+ decided to keep oil production unchanged through March, removing one source of uncertainty.
Meanwhile, the 10-year U.S. Treasury yield climbed to around 4.19%, near recent highs. Rising yields often pressure growth stocks, especially technology and software names, which depend on future earnings.
This mix of higher yields, geopolitical risk and uneven stock performance sets the stage for a cautious market open.
Chips and Hardware: A Clear Bright Spot
Despite overall market weakness, chipmakers and hardware companies stood out as winners.
Stocks such as:
- Nvidia
- AMD
- Taiwan Semiconductor
- Micron Technology
- SanDisk
performed well, especially toward the end of the week. These companies benefit from continued demand for artificial intelligence, data centers and high-performance computing.
The semiconductor sector also gained through exchange-traded funds focused on chips, signaling broader investor interest.
CES 2026: Why Nvidia, AMD and TSM Matter This Week
Attention now shifts to CES 2026 in Las Vegas, where major technology leaders will speak.
- Nvidia CEO Jensen Huang
- AMD CEO Lisa Su
are scheduled to deliver keynote addresses on Monday night. Investors will listen closely for updates on AI chips, data center demand and future growth plans.
Nvidia’s stock recently pulled back but found support near a key level, suggesting buyers are still interested. AMD rebounded strongly on Friday, though it still faces resistance ahead. Taiwan Semiconductor, which manufactures chips for both companies, surged to new highs and will soon report monthly sales and quarterly earnings.
Strong guidance or upbeat commentary at CES could lift the entire chip sector—and possibly the broader market.
Data Center and Industrial Stocks Show Strength
Beyond chips, companies tied to AI infrastructure and heavy construction also performed well.
Notable gainers included:
- Cooling and construction firms supporting data centers
- Electrical and component suppliers
- Industrial energy and turbine manufacturers
Aerospace stocks also remained firm, helped by steady demand and improving order visibility. These areas suggest that investors still believe in long-term industrial and AI-driven growth, even if software stocks are struggling.
Software Stocks Under Pressure
In contrast, software names continued to sell off sharply.
High-profile stocks such as:
fell well below important levels, signaling clear weakness. This suggests investors are rotating away from expensive software names and toward companies with tangible assets, strong cash flow and clear demand.
Tesla Struggles After Missing Expectations
Tesla also had a rough week. The stock extended its losing streak after vehicle deliveries missed already-lowered expectations. Although its energy storage business showed strength, that wasn’t enough to offset concerns.
Additionally, Tesla failed to meet Elon Musk’s earlier timeline for fully autonomous robotaxis by the end of 2025. The stock broke below key support, a warning sign for traders.
ETF Performance Highlights Sector Rotation
Last week’s ETF performance clearly showed where money is flowing:
- Chip and energy ETFs rose
- Industrial funds edged higher
- Software and innovation-focused ETFs fell sharply
This confirms a shift away from speculative growth and toward more stable or infrastructure-linked sectors.
What Investors Should Do Now
Markets are entering 2026 in a fragile state. While some sectors are holding up well, the overall trend remains uncertain.
Key themes to watch:
- Reaction to Trump’s Venezuela comments, especially oil prices
- CES announcements from Nvidia and AMD
- Bond yields and their impact on growth stocks
- Whether chip and industrial strength can offset software weakness
Sideways trading over recent weeks has created several potential setups, but patience is critical. This is not a time to chase stocks blindly.
Read also:
Nicolás Maduro Capture: What It Means for Chevron Stock and Venezuela Bonds
Trump Pressures Oil Giants on Venezuela as Markets Weigh Oil Impact
US Attacks Venezuela: What Happened, Why It Matters, and the Economic Shockwaves Ahead
