Wall Street looks ahead to a holiday-shortened week

Wall Street is heading into the final week of June with a more optimistic outlook after a strong first half of the year. Investors are watching developments around the U.S.Iran situation, recent inflation data, and signs that consumer spending remains solid despite higher energy prices. Market strategists say stocks could still rise into yearend, but the path may be uneven. Trading volumes are expected to be lighter ahead of the July 4 holiday, which could increase daytoday swings. Portfolio rebalancing at the end of the month and quarter may also add to volatility. Analysts are paying close attention to next week’s economic calendar, especially jobs data and inflationrelated signals. Some investors are trimming exposure to large tech names and looking more selectively at sectors such as financials and industrials, while others remain cautious about valuations in semiconductors and small caps.