Wall Street enters the final week of June with investors focused on whether the recent rotation out of mega-cap technology and into defensives, industrials, and financials can continue into the second half of the year.

The week will be shortened by the Independence Day market holiday on Friday, July 3, which means the most important U.S. economic data will be compressed into four trading days.

Five things to know for the market week beginning June 29:

The main event is the June employment report scheduled for Thursday, July 2. The release comes at a critical moment because investors have moved away from expecting rate cuts and are now debating whether the Federal Reserve may eventually need to raise rates again. A strong payrolls number, especially if paired with firm wage growth, could push 2-year yields higher and pressure long-duration growth stocks. A softer report could help bonds rally and support rate-sensitive sectors. A severe miss would risk reigniting growth-scare concerns.

Labor-market clues arrive before the official jobs report. JOLTS job openings for May, scheduled for Tuesday, June 30, give investors a read on labor demand and whether the ratio of job openings to unemployed workers remains firm. ADP private payrolls follow Wednesday; ADP’s prior report show private employers added 122,000 jobs in May, while the June report will be watched for confirmation that hiring is stabilizing rather than rolling over.

Manufacturing will also be important. The ISM Manufacturing PMI for June is scheduled for Wednesday. The May reading rose to 54.0, the strongest level in several years, but the details showed elevated price pressures and continued caution around factory employment. Investors will want to know whether the recent manufacturing strength is durable or simply reflects inventory front-loading tied to supply-chain and geopolitical risk.

The earnings calendar is light, though Nike (NKE) will illuminate concerns about consumers’ discretionary spending, tariffs, inventory discipline, and margin pressure. Constellation Brands (STZ) is another read on consumer demand, pricing power, and beverage-category resilience.

Global policy and inflation headlines could matter nearly as much as U.S. data. The ECB Forum on Central Banking runs from June 29 to July 1 in Sintra, Portugal, giving investors a chance to hear from major central bankers after a hawkish shift in global rate expectations. Asia will add more macro signals, with Japan’s Tankan survey and China PMI data in focus. Recent flash PMI data showed Japan’s factory activity expanding, while Germany’s business activity weakened, underscoring the uneven global backdrop.

Overall, the week ahead is about confirmation. If jobs, wages, and ISM prices stay firm, the market may keep pricing a Fed that stays restrictive longer. If labor cools and manufacturing inflation eases, bonds could rally and equities may get a cleaner path into July.

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