Stocks, Bonds Set for Jittery Start on Venezuela: Markets Wrap

The question is whether events in Venezuela add to the appeal of US debt by fanning risk or diminish demand for them by increasing concerns over inflation or US fiscal policy.

Having attacked Venezuela and deposed its president, Nicolas Maduro, US President Donald Trump now says he has big plans for the country’s oil industry and its vast reserves.Source: Bloomberg

“From a market perspective, we would be careful not to over-trade” when the market opens on Monday, Marko Papic, chief strategist at BCA Research, wrote in a note. “A major use of land troops is highly unlikely. As such, fiscal outlays are not going to be affected and bond yields should not rise.”

Maduro’s arrest assures a “lively start” to Washington’s policies as a factor in macro risk analysis, said Kim Wallace of 22V Research, in a note dated Sunday. The more pertinent question is whether 2026 policy upheaval presents tangible risks or opportunities to market participants, or a temporary risk flare soon to fade.

Elsewhere, Federal Reserve Bank of Philadelphia President Anna Paulson said modest additional interest-rate cuts could be appropriate later in 2026, but conditioned that outcome on a benign outlook for the economy.

US stock investors opened 2026 on cautious footing Friday, lifting benchmarks modestly on the year’s first trading day. Shares in Asia had their best start to a new year since 2012, helped by technology companies.

“Equities will likely look through the headlines even if volatility rises, with rates and US specific catalysts ultimately driving market direction in 2026,” said Dave Mazza, chief executive officer of Roundhill Investments.

Key economic data will also shape the week ahead. In addition to the December jobs report, the US Bureau of Labor Statistics will issue on Wednesday figures for November job openings, quits and layoffs. The Institute for Supply Management’s December surveys of manufacturers and service providers will also offer clues about employment in those industries.

At week’s end, the US government will report on October housing starts, while the University of Michigan issues its preliminary January consumer sentiment index.

Corporate News:

Tesla Inc. ceded the title of world’s top seller of electric cars to China’s BYD Co., squandering a lead the Elon Musk-led company built as it popularized plug-in vehicles over the past decade.
Airbus SE delivered 793 aircraft in 2025, exceeding its revised annual target, according to people familiar with the matter.

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