The U.S. capture of Venezuelan leader Nicolas Maduro introduced a new twist to the investment outlook to begin the year, underscoring how changes on the geopolitical stage could influence markets in 2026 and beyond. The move to oust Maduro turned market attention to the prospects for new oil production in Venezuela, whose output accounts for roughly 1% of global supply despite holding the world’s largest proven crude oil reserves. While continued political uncertainty and financial risk for producers may cast some doubt, higher oil production over time could lower global prices, dampen inflation, and allow central banks to keep interest rates lower.

The U.S. economy is also in focus this week. The Labor Department will publish its December jobs report on Friday with estimates suggesting that employers added just 54,000 jobs, compared with a gain of 64,000 in November, according to a poll by Dow Jones. Economists also forecast that the unemployment rate, which stands at a four-year high of 4.6%, ticked up to 4.7%.

In a new Weekly View from the Desk, PGIM’s fixed income team dives deeper into the market implications from Maduro’s downfall, including longer-term effects from great power competition and growing spheres of regional influence.