WALL Street stocks rallied into the close of a powerful week, bolstered by news of a federal budget deal and more indications that inflationary pressures remain under control.

The Dow Jones industrial average rose 94.72 to close at 7,071.20, and the technology-rich Nasdaq market soared. For the week, the Dow rose 332.33 points.

Other leading stock measures posted big gains too.

Although higher most of the day, the markets took off late in the session as word spread that President Clinton and Republican congressional leaders had agreed a plan to balance the budget.

Yesterday's data on April employment, the last of several major reports released this week, initially drew a mixed reaction, but investors latched onto indications that job creation remained modest while wages edged lower.

Advancing issues outnumbered decliners by more than four-to-one on the New York Stock Exchange, with 2,143 up 509 down and 704 unchanged.