Investors face another busy week as major U.S. technology companies prepare to report earnings, with a focus on fresh signals about the strength of artificial intelligence spending. Alphabet's quarterly results will be closely watched for signs that the industry's investment cycle remains intact, while chipmakers Intel and Texas Instruments will also release earnings, offering further insight into demand across the semiconductor sector.

The latest round of earnings from major U.S. technology companies will dominate market attention, with investors looking for fresh signals about the strength of artificial intelligence spending. Recent concerns over the sustainability of massive infrastructure spending have weighed on the sector, but Alphabet's report is expected to provide some clarity on this front.

Geopolitical tensions continue to influence financial markets as renewed military action between the United States and Iran raises concerns over energy supplies. The fragile ceasefire between the two countries has deteriorated, leaving uncertainty around shipping through the Strait of Hormuz, one of the world's most strategically important oil transport routes.

The European Central Bank is expected to leave interest rates unchanged at this week's meeting, but investors will be looking for guidance on how officials intend to respond to persistent inflation pressures in the coming months. The ECB increased interest rates by 25 basis points in June, citing inflation risks linked to higher energy prices following the conflict involving Iran.

Meanwhile, SpaceX is aiming to carry out its 13th Starship test flight as early as Thursday, with the mission focusing on completing a successful launch sequence and testing the performance of its Gemini artificial intelligence model. The company's shares have recovered modestly in extended trading after declining below their initial public offering price last week.

In other news, IMAX stock has gained after The Odyssey posted a record opening weekend, while AMD stock has climbed after Microsoft expanded its Azure AI partnership. These developments are expected to shape investor sentiment in the days ahead, particularly with regards to the broader tech sector and its potential impact on consumer spending.

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