Wall Street was volatile at the start of the week

Wall Street was volatile at the start of the week. In the end, the leading indices showed little change. At first, investors were even more positive, with hopes resting on the virtual summit between China's President Xi Jinping and US President Joe Biden late in the evening. But that was not enough for a sustained upward movement, especially since the indices are near their record highs. Investors are relying on a further rapprochement between the USA and China in a tense relationship, for example on trade issues, it said. But there are still too many question marks. For this, the former head of the New York Fed, William Dudley, sets the tone. He believes the Fed will need to raise its short-term interest rate target from near zero to three to four percent. The central bank must raise interest rates faster and harder "than people think," said the still influential Dudley in an interview with Bloomberg TV. The Dow Jones index is 13 points lighter at 36,087 points. The S&P 500 and the Nasdaq Composite also tend almost unchanged. The technology stocks in the Nasdaq are burdened by rising returns. Against the background of galloping inflation, the question of who will lead the US Federal Reserve in the future is becoming increasingly important. According to a report, Biden seems to be wavering between incumbent Jerome Powell and Fed governor Lael Brainard, who is considered a monetary dove. Their chances have recently increased, which the stock exchange is happy to take note of. The losses are however limited. All in all, traders speak of a relief about the unexpectedly positive reporting period for companies, which is creating a friendly mood on Wall Street. "Investors were quite concerned about the third quarter results, but we weathered them very well," said investment strategist Edward Smith of Rathbone Investment Management. Positive economic data are also providing a tailwind: business activity in the manufacturing sector in the New York area increased significantly more strongly than expected in November.