U.S. stocks rallied on Friday with the S&P 500 and Dow industrials posting their biggest one-day gains in nearly three months.

Investors took a strong U.S. jobs report as a further indication that the Federal Reserve is more than likely to raise interest rates later this month. Meanwhile, comments from European Central Bank President Mario Draghi, who said the bank can step up monetary stimulus if needed, also helped lift markets.

Steep advances in financials and telecoms sectors more than offset losses in energy shares, which were hit by a plunge in oil prices.

The main indexes finished the week flat or marginally higher as they more than took back losses from a deep Thursday plunge.

The S&P 500 SPX, -2.37% gained 41.97 points, or 2.05%, to 2,091.60 and was flat over the week. Financials and telecoms led the gains, while the energy sector was the only one to finish in the red.

The Dow Jones Industrial Average DJIA, -1.92% jumped 369.96 points, or 2.1%, to 17,847.63 and gained 0.3% over the past week. The Nasdaq Composite COMP, -3.01% ended the session up 104.74 points, or 2.1%, to 5,142.27 and posted a 0.3% weekly gain.

Analysts said Friday’s gains on Wall Street were partly driven by an upbeat jobs report and partly by a reverse action from the selloff during the previous session that was likely overdone.

A monthly jobs report showed the economy added 211,000 jobs last month, while the unemployment rate remained at 5%; also, September and October payroll numbers were revised higher.

“People’s macro views have not changed materially, so today’s rally is partly exaggerated by [Thursday’s] surprise selling after the European Central Bank announced its stimulus package,” said Brian Fenske, head of sales trading at ITG.

Energy stocks sold off after the Organization of the Petroleum Exporting Countries on Friday agreed to keep pumping at current production levels despite a global glut of crude oil. WTI crude futures CLF26, fell 2.7%, to settle at $39.97 a barrel.

Shares of NRG Energy Inc. NRG, -1.11% plunged 18%, while Kinder Morgan Inc. KMI, -4.45% and Consol Energy Inc. CNX, -0.09% both fell 13% and 11% respectively, making them the top three decliners on the S&P 500.

Read also: ‘All signs point to liftoff’: November payrolls reactions

Stocks to watch:Avon Products Inc. US:AVP jumped 5.8% on speculation that it’s nearing a deal with private-equity firm Cerberus Capital Management LP to sell its North American business, according to a report in The Wall Street Journal, citing people familiar with the matter.

Shares of Hovnanian Enterprises Inc. HOV, -6.36% rose 4.7% after the company reported better-than-expected profit during its latest quarter, though sales slipped.

Shares of Big Lots Inc. BIG, -3.06% fell 6.3% after reporting results.

Shares of KaloBios Pharmaceuticals US:KBIO rose 6.2% after the company late Thursday announced it had formed a new management team, raised $8.2 million in a private placement and acquired a treatment for a rare disease.

Shares of GoPro Inc. GPRO, -1.20% fell 4.9% to close at $18.00—a new low, after a disappointing outlook from key supplier Ambarella Inc. led analysts to cut quarterly revenue estimates for the maker of action cameras.

Other markets:European stocks SXXP, +0.55% saw their worst week in more than three months amid a slide by energy stocks. Asia suffered losses across the board, led by a 2.2% drop for the Nikkei 225 index NIK, -1.23% , its biggest one-day drop in more than 2 months, as the yen moved higher against the dollar.

But the dollar DXY, +0.01% regained strength, as the U.S. Dollar Index rose 0.8% to 98.38. The euro EURUSD, -0.04% hit a one-month high of $1.0981 on Thursday, but has since drifted back to $1.0867.

Gold futures US:GCG6 jumped $22.90, or 2.2%, to settle at $1,084.10 an ounce and scored their first weekly gains in seven weeks.