By Yasin Ebrahim

Investing.com – The S&P 500 moved off session lows Thursday, underpinned by a slight dip-buying in tech and financials and a jump in energy as oil prices rallied.

While the index rose 0.3%, it fell by 0.17% or 61 points. The Nasdaq saw 0.4% increase.

Meta, previously known as Facebook (NASDAQ;) and Alphabet were the largest gainers in tech. The latter was up over 33% because investors bought tech.

The move off the lows in tech comes in the wake of concerns that growth stocks are set for a challenging period as the Federal Reserve – in its December minutes released Wednesday – signaled that it could be prepared to tighten monetary policy faster than expected to curb inflation pressures.

Some investors were reminded by some Fed members that tightening discussions were within the parameters of December’s communication, despite the minutes being hawkish.

“It is important to keep in mind that these minutes are entirely consistent with the Fed communication at the FOMC meeting, the updated dots, and the communication in the interim,” Jefferies said in a note. “There isn’t really any new information here.”

Energy, meanwhile, racked up gains as U.S. oil prices briefly topped $80 a barrel, but may soon run out of steam as the omicron variant threatens demand at time when supply is set to increase in the first quarter, “partly due to the release of strategic reserves,” Commerzbank said.

The rise in Treasury yields continued to drive bank stocks higher, and the 10-year closed at its 52-week peak as traders priced in tightening by the Federal Reserve sooner than expected.

Signature Bank (NASDAQ:), SVB Financial (NASDAQ:), and People’s United Financial (NASDAQ:) were among the biggest gainers.

As JPMorgan (and Citigroup) begin their quarterly earnings season on January 14, banks will be the focus of more attention.

The economic data revealed that the economy suffered more than anticipated, but unexpectedly, weekly employment rose to 207,000 in the week ending January 1.

Market participants are still optimistic about the recovery, especially in the labor sector, where December’s job growth is expected to rebound after November’s softening.

Economists predict that the U.S. would create 400,000 jobs in December. The increase in labor force participation is a contributing factor.

“In December, we think the participation rate will tick up from 61.8% to 61.9%. Together with our forecast for employment, this would leave the unemployment rate unchanged at 4.2% in December,” Morgan Stanley said ahead of the jobs report.