The Dow jumped 594.79 points (1.2%) to 48,977.18, the Nasdaq advanced 160.19 points (0.7%) to 23,395.82 and the S&P 500 climbed 43.58 points (0.6%) to 6,902.05.

The Dow's sharp gain was driven in part by a 5.1% surge in Chevron (CVX) shares, as the energy giant rallied following a U.S. attack on Venezuela that resulted in the capture of President Nicol's Maduro. Crude oil prices spiked on the news, lifting oil service stocks and pushing the Philadelphia Oil Service Index up 5.5% amid optimism about prospects for rebuilding Venezuela's oil infrastructure. Gold stocks also advanced strongly as investors turned to the metal's safe-haven appeal during heightened geopolitical tensions.

Broader market strength extended to financial, airline, and retail stocks while utilities and pharmaceuticals declined. Meanwhile, the Institute for Supply Management reported that U.S. manufacturing activity unexpectedly weakened in December, with the PMI slipping to 47.9 from 48.2, signalling continued contraction despite expectations of a modest rebound.

Asia-Pacific stocks moved mostly higher. Japan's Nikkei 225 Index surged by 3%, China's Shanghai Composite Index jumped by 1.4%. The major European markets also moved to the upside on the day. While the German DAX Index shot up by 1.3%, the U.K.'s FTSE 100 Index climbed by 0.5% and the French CAC 40 Index rose by 0.2%.

In the bond market, treasuries regained ground after trending lower over the past few sessions. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, fell 2.2 bps to 4.16%.

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