Movement in the US debt dispute has encouraged investors

Movement in the US debt dispute has encouraged investors to return to Wall Street. The Dow Jones gained one percent to 34,755 points. The technology-heavy Nasdaq advanced 1.1 percent to 14,654 points and the broad S&P 500 gained 0.8 percent to just under 4,400 points. Congress agreed on a compromise to raise the debt ceiling that will keep the US financially fluid until December. The probability of insolvency is low, but it would have fatal consequences, said Greg Swenson, founding partner of the investment bank Brigg Macadam. Since this risk is off the table, the recovery in prices does not come as a surprise. In addition, the publication of the official US labor market data on Friday cast its shadow. According to the surprisingly strong figures from the private employment agency ADP on Wednesday, experts expect 500,000 jobs to be created outside of agriculture in September, around twice as many as in the previous month. This would speak for a robust economy and against stagflation - a stagnating economy with rising inflation - said analyst Jochen Stanzl from the online broker CMC Markets. However, strong labor market data from the US Federal Reserve gave the Fed the green light to tighten the monetary policy reins. Chinese companies traded in the US, such as online retailer Alibaba and search engine operator Baidu, were among the winners. Their papers gained up to a good eight percent. The listed funds (ETFs) on Chinese stocks from iShares and KraneShares gained up to a good seven percent. Against the background of growing tensions between the USA and China, they benefited from the prospect of a virtual summit meeting between US President Joe Biden and his Chinese colleague Xi Jinping. This is a good sign, said Naeem Aslam, chief market analyst at brokerage firm AvaTrade. If the two world's largest economic powers do not discuss issues face to face, this causes unrest among investors. Investors also reacted with relief to the announcement by the fund provider Fidelity that they want to invest more money in China again after the sell-off in recent months. Partly because of the debt crisis of the real estate company Evergrande, the market capitalization of Chinese stock market values ​​has shrunk by a total of around one trillion dollars. "The market is a little more confident that China will get through there and that the whole thing will not develop into a harbinger of doom, as feared," said Stuart Cole, chief economist at the brokerage house Equiti Capital. There was also demand for Levi Strauss papers, which rose by almost 8.5 percent. The jeans manufacturer had presented a quarterly result above market expectations. It also announced a $ 200 million share buyback.