Global stock markets advanced on Monday, with risk-sensitive assets maintaining demand, and technology stocks playing a leading role in the equity rally. Bond yields recovered, while oil prices fell as investors weighed the potential consequences of a strong US stance against Venezuelan President Maduro, an event that heightened geopolitical risks and propelled gains in gold and the US dollar.

As of writing, Dow futures were down 0.08%, S&P 500 futures were up 0.25%, and Nasdaq futures were up 0.63%.

The optimistic sentiment in equities was most evident in Asia, where regional stock indices hit record highs. Technology and mining stocks saw the most significant gains in Europe. Additionally, defense stocks led the gains in Europe, as renewed US military actions sparked fresh concerns over geopolitical risks. The defense stock index rose 2.7%, reaching its highest point in two months.

Nasdaq 100 futures climbed 0.6%, with chip stocks like Advanced Micro Devices and Micron Technology rising over 2% in premarket trading. S&P 500 futures increased by 0.3%.

Following dramatic events in Venezuela over the weekend, US President Trump indicated he would temporarily bring the South American nation under US control and stated he might order another military strike if Venezuela did not cooperate with US efforts to open its oil industry and combat drug trafficking. He also threatened military action against Colombia and Mexico.

"Artificial intelligence remains the most dominant factor in the current market. Tech optimism continues to outweigh all other narratives," said Charu Chanana, Chief Investment Strategist at Saxo Markets, in an interview.

Nevertheless, the future remains fraught with uncertainty. Venezuela's interim President Delcy Rodríguez, after initially expressing outrage over Maduro's detention, sent more conciliatory signals about cooperation with the Trump administration.

"The US removal of Venezuelan President Nicolás Maduro is unlikely to have major short-term economic consequences for the global economy," said Neil Shearing of Capital Economics. "But its political and geopolitical consequences will be far-reaching."

Brent crude prices fell towards $60 per barrel, indicating oil market traders were not panicked by developments in Venezuela. President Trump's proposal for a US-led revival of Venezuela's oil industry caused shares of US oil giants to surge significantly, with Chevron rising over 7% in early trading.

Spot gold rose over 2%, breaking above $4,430, yet still below the all-time high of $4,549.71 set last year. Silver gained 4%. The US dollar index moved towards its largest gain since November.

Amid increased demand for both safe-haven and risk assets, the US dollar and gold provided safe havens, while questions remained about the future of the global order. Meanwhile, equity traders appeared unconcerned that geopolitical tensions would disrupt the global stock market's three-year bull run.

"The economic impact of the Venezuela event is too small to affect the stock market," said Christopher Dembik, Senior Investment Advisor at Pictet Asset Management. "The same applies to the oil market: people have had time to look at the data, and even under the most optimistic scenario, it could take two to three years to have a significant impact."

"Given the unexpected events in Venezuela over the weekend, it remains unclear whether the Trump administration is interested in further regime changes," said Vasu Menon of OCBC in Singapore. "Strategic calculations are unfolding against the backdrop of a midterm election year, and the developments are uncertain. This uncertainty could support oil prices. A more tense geopolitical environment might boost demand for safe-haven assets, such as precious metals."

In bond markets, the yield on the eurozone benchmark, the German 10-year bond, dipped slightly to 2.893%, after rising 3 basis points last week. The US 10-year Treasury yield fell two basis points to 4.17%. The question is whether these events will increase the appeal of US debt by sparking risk aversion or decrease demand due to concerns about inflation or US fiscal policy.

"From a market perspective, we must be careful not to overtrade. The likelihood of large-scale use of Army troops is extremely low, so fiscal spending won't be affected, and bond yields should not rise," wrote BCA Research Chief Strategist Marko Papic in a weekend report.

In currency markets, the US dollar began the first full trading week of 2026 on an upward trend after a weak December, climbing to multi-week highs as traders focused heavily on a slew of economic data due this week.

The US Dollar Index, which measures the greenback's strength against a basket of six major currencies, rose 0.13% to 98.685, extending its gains for a sixth consecutive day.

The dollar edged higher amid tense geopolitical background, but analysts suggested it might be premature to declare this uptick a lasting rebound. The US monthly jobs report due on Friday would be a key factor influencing monetary policy expectations, potentially a more significant driver for the dollar.

Meanwhile, Philadelphia Fed President Anna Paulson indicated that modest additional interest rate hikes might be appropriate later in 2026, but this outcome would depend on a moderate economic outlook. According to LSEG data based on futures, traders currently anticipate two US rate cuts this year.

A wave of key economic data in the coming week will impact markets. Besides the December employment report, the US Bureau of Labor Statistics will release November data on job openings, quits, and layoffs on Wednesday. The Institute for Supply Management's December surveys on manufacturing and services will also provide clues about employment in those sectors. Later in the week, the US government will release housing starts data, and the University of Michigan will publish preliminary January consumer sentiment figures.

"While we see geopolitical risks, I don't think we should focus too much on them. Soon, we will return to macroeconomic realities, as a large amount of US data is due this week," said Jeremy Stretch, Head of G10 FX Strategy at CIBC Markets.

He added, "Typically, the initial currency reaction to major events is often wrong. Not that this reaction is wrong, but I think this dollar rally could be subject to a correction if we see signs of weakness in the jobs data."

He noted that recent strength in US economic data had led markets to consider the possibility of a slower pace of rate cuts this year.

The week's economic data begins with the ISM Manufacturing Index on Monday and culminates with the monthly Non-Farm Payrolls report on Friday.

"I dare say the forex market is not fully pricing in Venezuela risk but is reflecting more how US data will influence the Fed's policy path," said Kyle Rodda, Senior Financial Markets Analyst at Capital.com.

Investors are also awaiting President Trump's decision on the next Fed Chair, as current Chair Jerome Powell's term ends in May. Trump stated he would announce his nominee this month, describing Powell's successor as "someone who supports significant rate cuts."

A new report from Goldman Sachs warns that while investors no longer reward companies for layoffs, artificial intelligence is set to trigger another wave of job cuts in 2026 as firms accelerate automation to reduce costs.

This warning comes as the global economy is expected to remain broadly stable, highlighting a growing disconnect between economic conditions and job security. Although financial markets have started viewing large-scale layoffs as a sign of weak growth prospects rather than efficiency improvements, companies are still expected to proceed with automation-led restructuring.

Goldman Sachs stated that companies are increasingly using AI to automate routine and repetitive tasks, thereby controlling headcount growth or even directly reducing staff size.

Oil and gas stocks surged collectively in premarket trading. Halliburton rose over 10%, SLB Ltd gained over 9%, Chevron and ConocoPhillips climbed over 8%, and Exxon Mobil advanced over 3%.

Memory-related concept stocks rose premarket. Micron Technology gained nearly 3%, SanDisk rose 2.7%, Western Digital increased 2.1%, and Seagate Technology was up 1.2%. According to South Korean media reports, Samsung Electronics and SK Hynix are seeking to increase server DRAM prices by up to 70%.

Gold concept stocks rose collectively premarket. New Gold surged over 5%, Coeur Mining gained over 3%, Pan American Silver, Barrick Gold, Harmony Gold, and Newmont Corporation all rose over 2%, Kinross Gold advanced nearly 2%, and Gold Fields increased 1.5%.

Bitcoin touched a new high in over three weeks, and cryptocurrency-related stocks rose premarket. Coinbase gained 3.8%, Bitfarms rose 4.2%, and Strategy increased 3.7%.

Intel rose over 3% premarket after Melius Research upgraded its rating to "Buy" and raised the price target from $44 to $50.

Tesla rebounded 1.6% premarket, potentially halting a seven-day losing streak. Tesla's December sales saw significant declines in several European countries, except Norway.

IBM rose over 1% premarket after receiving a positive outlook from Jefferies, which upgraded its rating to "Buy."

KE Holdings gained nearly 5% premarket, as institutions anticipate increased policy support for the real estate sector in mainland China.

XPeng fell 2.8% premarket, with its H-shares closing down 4.6% today following the departure of a key executive.

Driven by surges in brain-computer interface stocks in Hong Kong and A-shares, Brain Scientific skyrocketed nearly 44% premarket.

Taiwan Semiconductor Manufacturing Company rose over 3% premarket, as its 2nm process technology entered mass production as scheduled in the fourth quarter of last year.