The Standard & Poor's 500 index edged up 0.3% this week as investors considered the potential effects of weaker-than-expected monthly payroll data.

The S&P 500 ended the week at 6,481.50. The week's move came in just four sessions as the US stock market was closed on Monday for Labor Day. The index is now up 10% for the year.

The August employment report Friday morning showed nonfarm payrolls rose by 22,000, well below the 75,000 increase expected in a survey compiled by Bloomberg. While July payrolls had an upward revision to a 79,000 increase, June payrolls were revised downwards to a 13,000 decrease, resulting in a net downward revision of 21,000 jobs.

The unemployment rate rose to 4.3% in August from 4.2% in July, as expected, while the labor force participation rate rose to 62.3% from 62.2% in the previous month and the size of the labor force expanded on gains in both employment and unemployment.

While the weaker-than-expected payrolls added to investors' concerns about the economy, it also prompted some to increase their bets on the likelihood the Federal Reserve's monetary committee will resume cutting interest rates at its September meeting.

Communication services led the gainers this week, rising 5.1%, followed by consumer discretionary, up 1.6%. Health care, consumer staples and technology also edged higher.

Google parent Alphabet (GOOG, GOOGL) had the largest percentage gain in communication services, climbing 10%, as the company received a favorable court ruling allowing it to retain control of its Chrome browser. The ruling has "strengthened" the company's position in generative artificial intelligence and reduced near-term regulatory risk to its core business, Tigress Financial Partners said in a Friday note.

In consumer discretionary, top gainers included shares of home builders D.R. Horton (DHI) and Lennar (LEN), amid hopes for lower interest rates. D.R. Horton shares rose 7.3% while Lennar shares added 6.6%.

On the downside, energy fell 3.5%, followed by a 1.7% drop in financials, a 1.1% decline in utilities and a 0.9% slip in industrials. Materials and real estate also edged lower.

The energy sector's drop came as crude oil futures also fell on a weekly basis.

Diamondback Energy (FANG) had the largest percentage drop in the energy sector, falling 6.8%. The company will sell Environmental Disposal Systems to Deep Blue Midland Basin for $750 million and renew a 15-year water dedication across a 12-county Midland Basin area, Deep Blue said Tuesday.

Earnings reports are expected next week from companies including Oracle (ORCL) and Adobe (ADBE).

Economic data will feature the August producer price index and consumer price index, two closely watched inflation measures.