WS declines in first week of 2022

Wall Street on Friday wrapped up the first week of the new year with daily and weekly losses as investors worried about looming US interest-rate hikes and unfolding Omicron news.

The Nasdaq posted its biggest weekly percentage fall since February 2021 and led declines for the day in the major indexes.Stocks fell on Friday after the December US jobs report missed expectations but was still seen as strong enough to keep the Federal Reserve’s tightening path in place.

Friday’s Labor Department data showed the US jobs market was at or near maximum employment even though employment rose far less than expected in December, when there were worker shortages.

On Wednesday, minutes released of the Fed’s Dec. 14-15 policy meeting showed officials at the US central bank viewed the labor market as “very tight,” and signaled the Fed may have to raise rates sooner than expected.

“The investor takeaway is that the labor market continues to be tight despite the headline miss,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.