The jobs data could also indicate whether the Fed is likely to raise interest rates. Data this week showed inflation continued to run well above the U.S. central bank's 2% annual target.
Rate hikes pose several challenges for equity performance, including by raising borrowing costs for consumers and companies.
Fed funds futures late on Friday suggested a 57% chance of a hike at the next meeting in September, and investors were wary that a hot jobs report showing a big jump in employment and sharp wage growth could increase such bets.
"What the stock market wants to see is a continued number that gives the Fed the ability to remain on hold," said Matt Stucky, chief portfolio manager, equities, at Northwestern Mutual Wealth Management.
Other economic data in the coming week included reports on manufacturing and services sector activity. The prior monthly reading from the Institute for Supply Management showed U.S. manufacturing activity increased to the highest level in more than four years.
"Continuing that momentum into September we think is something that's really noteworthy to watch," Stucky said.
Wednesday's earnings report from Broadcom, whose market value was last about $1.7 trillion, will also be in focus, after rival semiconductor company Nvidia's results lifted equity indexes.
Nvidia forecast a whopping 70% jump in revenue for its next fiscal year. It was a rare disclosure for the AI bellwether, which typically does not issue such projections.
"We're just wondering whether or not Broadcom offers the same type of visibility," Stucky said.
Other reports are due next week from tech companies Dell Technologies and Palo Alto Networks. With the vast majority of companies having already reported, S&P 500 second-quarter earnings are on pace to have climbed 34.5% from a year earlier on an adjusted basis, according to LSEG IBES data. The reporting season has demonstrated "really robust core earnings power," Reynolds said.
"If we continue to see that with the last few reports in the next week, I think that's really constructive for what the rest of the year looks like," Reynolds said.
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