"I think it's an important inflection point here," said Art Hogan, chief market strategist at Wunderlich Securities. If "we break the correlation with energy and start focusing on earnings, it's a much healthier environment for investors."
U.S. crude oil futures settled up 40 cents, or 1.20 percent, at $33.62 a barrel, for its first four-day win streak since April.
Oil held higher after Baker Hughes said the U.S. oil rig count fell by 12, marking a sixth-straight week of declines. Earlier, oil briefly pared gains to turn lower. An Iranian official said the country would not join an immediate OPEC production cut, Dow Jones reported.
Read MoreOil rallied this week on false hopes for a deal
The Market Vectors Semiconductor ETF (SMH) closed up 4.1 percent, as Skyworks climbed more than 6 percent on earnings that topped expectations, according to StreetAccount.
Visa jumped 7.4 percent and Goldman Sachs gained nearly 2.9 percent as the top two contributors to gains in the Dow as all constituents closed higher.
The Nasdaq composite also ended more than 2 percent higher, but underperformed as Amazon closed down 7.6 percent. Apple closed up more than 3 percent. The iShares Nasdaq Biotechnology ETF (IBB) turned higher to close up about 1.4 percent, but still fell more than 20 percent for the month, its worst going back to its inception in 2001.
The Dow transports closed up more than 3 percent with Matson and JetBlue leading all constituents higher.
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Global equities climbed after the Bank of Japan's surprise announcement, with the Nikkei reversing mild losses to close up 2.8 percent. The Shanghai composite closed 3.09 percent higher. European stocks ended more than 1 percent higher, with the STOXX 600 up more than 2 percent.
"That (BOJ move) actually comes as a shock. I expected them to be dovish, but negative interest rates was a shock," said John Caruso, senior market strategist at RJO Futures.
"Anytime central banks push interest rates lower, stocks applaud it," he said.
Treasury yields edged lower to hit multi-month lows, with the 2-year yield at 0.78 percent and the 10-year yield near 1.93 percent.
"I think much of the rally (in bonds) can get reversed with the stock market doing better... and stabilization in oil," said Bryce Doty, senior fixed income manager with Sit Investment Associates.
Read MoreFed funds futures pricing no rate hikes in 2016: CME data
The U.S. dollar climbed more than 1 percent against major world currencies, with the euro near $1.083 and the yen at 121.06 yen against the greenback.
Overnight, the Bank of Japan announced a negative interest rate policy. The move comes after the Federal Reserve kept rates unchanged at its meeting this week and noted the central bank is "closely monitoring" global economic and financial developments and assessing their implications for their outlook.
Speaking last week, European Central Bank President Mario Draghi raised hopes of stimulus as soon as the March meeting.
Read MoreBOJ's negative rates are 'economic kamikaze': Analyst
"At the end of the day, I don't think it's a long-term fix to what we have going on," said Tom Siomades, head of Hartford Funds Investment Consulting Group.
"I'm disappointed that we started the year like we did, how we reacted so strongly to China like we did," he said. "I'm still optimistic, but a lot of it hinges on Fed policy and a better job of negotiating and (communicating) what their policy is."
Dallas Fed President Robert Kaplan, an alternate member of the FOMC, said in an interview with Reuters Friday that the central bank needs more time to weigh the global risks to the U.S. economy. He also said the Bank of Japan stimulus will clearly affect the dollar and that policymakers are "mindful of that."
San Francisco Federal Reserve Bank President John Williams said on Friday the central bank is on a path to gradually raise interest rates. He is optimistic that the U.S. can weather the storms from abroad and that the U.S. economy is "doing well," Reuters reported.
Read More Countries weakening currencies for global growth: El-Erian
"Bank of Japan certainly a new constructive (development for stocks) and the backdrop of the overall earnings structure is better than bad," Hogan said.
Visa closed up 7.4 percent after reporting earnings 1 cent above estimates, although revenue missed slightly. The credit card issuer also affirmed its full year earnings forecast, surprising some analysts who had expected a cut.
Microsoft gained 5.8 percent after beating on both the top and bottom line, helped by improvement in its cloud services business as well as cost-cutting.
Amazon.com reported quarterly profit substantially below expectations on revenue also slightly below forecasts. The stock closed down 7.6 percent, off session lows, despite the highest-ever quarterly profit ever posted by the online retail giant.
Facebook extended Thursday's stellar gains to close up 2.8 percent, at a record.
Consol surged 17.6 percent, ending mildly higher for the year so far. The coal and natural gas producer reported on Friday an adjusted loss for the fourth quarter but said that its free cash flow would help the firm "ride out this volatile market."
Dow futures rose more than 100 points in pre-market trade as Microsoft climbed but Chevron declined after the firm unexpectedly posted a loss for the first time since 2002, hit by the slump in oil prices. The stock held 0.6 percent higher in the close.