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imageNEW YORK: US stocks ended sharply higher Friday after a strong jobs report that fueled expectations that the Federal Reserve will begin to reduce its huge stimulus soon.

At the closing bell, the Dow Jones Industrial Average powered up 197.92 points (1.25 percent) to 16,019.43.

The broad-based S&P 500 advanced 1989 (1.11 percent) to 1,804.92, while the tech-rich Nasdaq Composite Index jumped 29.34 (0.73 percent) to 4,062.50.

The indices rallied from the markets' opening after a better-than-expected November jobs report from the Labor Department. The US jobless rate dropped to 7.0 percent, a five-year low, from 7.3 percent in September, and the economy added 203,000 jobs.

"Markets like this report because it indicates the risk of disinflation or deflation is diminishing," said David Kotok of Cumberland Advisors.

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