Banking stocks rallied to close out the week, spurred by promising economic data.

The Labor Department's report on Friday of a stable unemployment rate reinforced indications that the Fed will decide against raising interest rates when it meets this month. Labor statistics might not provide the most significant details for the Federal Reserve, analysts said, but the latest numbers might have eased concerns over a strong 5.2% growth in the gross domestic product in the second quarter, and a 0.5% rise in personal spending in June.

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