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Global markets signaled robust resilience on Monday, driving the Nasdaq more than 1% higher despite the sudden geopolitical upheaval following the ousting and extradition of Venezuelan President Nicolas Maduro to the United States. While the arrival of the former leader in New York on narco-terrorism charges spurred a flight to safety in gold and Bitcoin, investors largely focused on the resurgence of the artificial intelligence trade as the industry gathers for CES 2026 in Las Vegas.
Key Points
- Geopolitical Shift: Ousted Venezuelan President Nicolas Maduro faces federal narco-terrorism charges in the Southern District of New York following airstrikes in Caracas.
- Market Reaction: The Nasdaq rose over 1% and TSMC surged 5%, while spot gold climbed 2.7% as investors balanced risk with tech optimism.
- AI Focus: All eyes are on CES 2026, with major keynotes expected from Nvidia’s Jensen Huang and AMD’s Lisa Su regarding the next generation of AI chips.
- EV Slowdown: Tesla’s China factory shipments fell for the full year 2025, marking a second consecutive annual drop despite a December volume spike.
- Global Strategy: Analysts suggest the U.S. intervention in Venezuela signals a renewed deterrence strategy that could impact China-Taiwan relations.
Geopolitical Shockwaves Meet Market Resilience
The trading week opened against the backdrop of a major macro-level event: the removal of Nicolas Maduro and his wife, Cilia Flores, from Venezuela. Following a series of airstrikes in Caracas early Saturday, the couple was transported to New York via an armored Bearcat vehicle and motorcade to face trial in the Southern District of New York.
Federal prosecutors allege Maduro intended to benefit terrorist organizations and facilitated the movement of cocaine using state resources. The indictment claims that from 2000 to 2006, and continuing through his presidency, Maduro utilized Venezuelan law enforcement and state oil planes to traffic drugs and launder money. Despite the severity of these charges, equity markets remained unfazed.
"I don’t think this has short-term consequences for the markets. The reason they are shrugging it off is it's not a short-term trading event. The longer play is geopolitical... This move in Venezuela is more of a chess game that is a longer run game," said Anna Rathbun of Grenadilla Advisory.
While equities rallied, there was a notable search for safe-haven assets under the hood. Spot gold rebounded significantly, trading 2.7% higher, while Bitcoin—often touted as "digital gold"—rose nearly 3%.
The AI Trade and CES 2026 Expectations
Investor enthusiasm is squarely fixed on Las Vegas as the Consumer Electronics Show (CES) kicks off. The technology sector is looking for confirmation that the AI boom will continue its momentum into 2026. Semiconductor giants Nvidia and AMD saw their stocks rise in early trading, with the market anticipating clearer guidance on product roadmaps.
Nvidia CEO Jensen Huang and AMD CEO Lisa Su are scheduled to deliver keynotes that will likely define the hardware landscape for the coming year. Analysts are particularly focused on what lies beyond Nvidia’s Blackwell chips and how the company plans to address memory chip bottlenecks.
"It’s highly unlikely that they’re going to surprise the markets with some new product, but maybe some substantive updates on the product roadmap. Nvidia has a commitment to releasing a new generation of GPU annually... Right now there’s a big focus on Blackwell, but what comes next is the Rubin generation," reported Bloomberg’s Ed Ludlow from Las Vegas.
The rally has broadened beyond the "Magnificent Seven," with digital storage and memory companies seeing significant gains. This dispersion suggests a healthier market structure as the "picks and shovels" phase of AI infrastructure build-out continues.
Strategic Ripples: The Taiwan Connection
The U.S. operation in Venezuela is reverberating in East Asia, particularly regarding cross-strait relations between China and Taiwan. The decisive U.S. action is being interpreted in Taipei as a signal of American resolve, potentially serving as a deterrent against Beijing.
This geopolitical narrative provided a tailwind for Taiwan Semiconductor Manufacturing Company (TSMC), which sits at the heart of the global AI supply chain. TSMC shares jumped roughly 5% on Monday, with Goldman Sachs raising its price target by 35%, citing the company's indispensable role in manufacturing advanced chips for Nvidia and Apple.
"Officials in Taipei are finding encouragement from the U.S. move in Venezuela, as perhaps a way of signaling deterrence against Beijing... They see this signals that Trump will exercise U.S. military power when he sees American strategic interests at risk," noted Mike Shepard, Bloomberg Tech Analyst.
EV Slowdown and Infrastructure Constraints
While the chip sector surges, the electric vehicle market faces ongoing headwinds. Tesla’s China factory shipments showed a late surge in December 2025, reaching over 97,000 units, but the company still recorded a decline in total annual shipments for the second consecutive year. This contraction highlights the intense pricing pressure and competition from domestic Chinese rivals like BYD.
Simultaneously, the physical infrastructure required to power the AI and tech boom is facing its own bottlenecks. Data center operators are navigating severe constraints in land, power availability, and supply chains for mechanical infrastructure.
Ryan Mallory, CEO of Flexential, emphasized that the industry is no longer just planning for the current year but is locked into securing resources for 2028 through 2032. "We see land, power, and supply chain [as the choke points]... You’re not just planning for 2026 right now," Mallory stated, noting a shift toward wholesale infrastructure to support high-density GPU deployments.
As the week progresses, the market will look to the CES keynotes for technical direction, while simultaneously monitoring the legal proceedings in New York for further geopolitical fallout.
