Market momentum wanes heading into the final week of June after monster rally in the first half

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Markets were in a tug of war between the bulls and the bears this week, a dynamic that some expect could continue next week.

Wall Street is preparing to close out a stronger first half to 2023 than many investors were expecting, though where markets will go from here remains up for debate. With just seven days to go until the end of the second quarter, all three major benchmarks are solidly in the green for the year. The Dow Jones Industrial Average has managed to eke out a more than 1% gain, while the S & P 500 has popped more than 13%.

"What we're looking for is the pace of inflation to be slowing, and we think that will occur," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "So clearly, the PCE number on the 30th will be perhaps the next economic statistic du jour that could impact sentiment. But again, we'll need more than just the PCE, we'll need the jobs data and other key indicators in July," Sandven added.

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