U.S. equities closed sharply higher on Friday as European and American bank stocks — as well as oil prices — bounced sharply, while investors digested U.S. economic data.
"I think people are finally seeing lots of things worth buying," said Adrian Day, chairman and CEO of Adrian Day Asset Management.
The Dow Jones industrial average gained more than 300 points, as Goldman Sachs and JPMorgan Chase contributed the most gains, snapping a five-day losing streak but still lost about 1.4 percent for the week.
Dow this weekSource: FactSet
"I definitely urge caution, but the conditions are there for a short-term bounce," said Adam Sarhan, CEO of Sarhan Capital.
JPMorgan's stock gained 8.3 percent on Friday after CEO Jamie Dimon bought over $25 million worth of the company's stock.
"If he pulls the trigger, that gives people confidence," Day said.
The S&P 500 index gained 1.9 percent, as financials rose 4 percent. The index also snapped a five-day losing streak.
The Nasdaq composite rose 1.4 percent.
"We're going to need a lot more than this to gain some ground," said Randy Warren, chief investment officer at Warren Financial Service. "I wouldn't get my hopes up but oil has to hit bottom at some point."
In Europe, shares of Deutsche Bank rose 11.8 percent after the bank said it was buying back over $5 billion in bonds, while Commerzbank's stock gained 18.02 percent amid a strong earnings report.
The pan-European STOXX 600 index rose 2.91 percent.
Markets in mainland China have been closed this week due to the Lunar New Year Holiday and are scheduled to reopen Monday. However, U.S. markets will be closed on Monday due to the President's Day holiday.
U.S. oil prices also boosted stock prices in the U.S., as WTI settled 12.32 percent higher, or $3.23, at $29.44 a barrel.
"The proposed deal for a cease-fire in Syria might help bring the Saudis to the table for an OPEC deal," said Peter Cardillo, chief market economist at First Standard Financial. "I believe one of the reasons oil prices are so low is geopolitical."
WTI settled 4.5 percent lower on Thursday, but began paring most of those losses after a report surfaced that OPEC was ready to cooperate with a production cut.
"We hit a new low and tons of short covering came into the market. That UAE headline was well timed," said John Kilduff, founding partner of Again Capital. "They arguably held the bottom. from a technical perspective on a short-term basis."
U.S. equities fell sharply Thursday amid a global sell-off, with the Dow falling more than 250 points. The Dow and S&P are also still down more than 8 percent year to date, while the Nasdaq is down over 13 percent.
"This is one of the more orderly sell-offs I've seen in my life," JJ Kinahan, chief strategist at TD Ameritrade, told CNBC on Thursday. "We haven't had any panic days."