US stock markets opened higher on Monday, even though the president Donald Trump’s the administration’s attack on Venezuela has increased geopolitical uncertainty.
The United States struck Venezuela’s capital, Caracas, early Saturday morning local time.
The broad S&P 500 index was up 0.6 percent and the technology-focused Nasdaq was up 0.7 percent.
The Dow Jones index was up almost one percent.
“The economic impact of the events in Venezuela is too small to weigh on the stock market. The same is true for oil: people have had time to look at the data, and according to even the most optimistic estimate, it would take two or three years for a significant impact to occur,” Pictet Asset Managementin senior analyst Christopher Dembik evaluates the market situation for Bloomberg.
For example, Brent crude oil futures have remained relatively stable at around $61 per barrel.
Oil companies, on the other hand, saw large upward price reactions at the stock market opening. For example, an oil giant Chevronin the rate was up by about seven percent and PBF Energy an eight percent increase.
Also ConocoPhillips was up more than three percent and Exxon Mobile slightly less than two percent increase.
In the preliminary market, the price reactions were even greater.
Oil company prices were boosted by President Trump’s statement over the weekend that US oil companies would take control of Venezuela’s oil when the country’s president Nicolás Maduron the administration has been overthrown.
“We’re going to send the world’s largest U.S. oil companies in. They’re going to invest billions of dollars to fix the badly damaged oil infrastructure and start generating revenue for the country,” Trump said at a news conference at his Mar-a-Lago villa in Florida over the weekend.
Technology shares were also a strong bet on Wall Street.
Among the largest companies, for example, Nvidia’s share was up 0.5 percent and Tesla’s was up 3.5 percent.
However, the events in Venezuela have not gone unnoticed by the market. Among other things, investors have sought safety in gold and the dollar, whose rates have been rising today.