U.S. stock markets rally on strong jobs report as key economic data looms

U.S. stock markets rallied on Friday, driven by a strong jobs report that showed 254,000 new jobs in September, surpassing expectations. The unemployment rate fell to 4.1%, and hourly earnings rose 4% year-over-year, indicating a resilient labor market. The S&P 500, Dow, and Nasdaq recovered from earlier losses due to rising Middle East tensions and increased oil prices. The energy sector led gains, rising over 6.5%, while communication services and utilities also performed well. Looking ahead, key inflation reports and bank earnings are expected next week. The consumer price index will be released on Thursday, followed by the producer price index on Friday. Advanced Micro Devices will also host an AI event on Thursday.