US equity investors will focus on mega-cap Q2 earnings this week while keeping an eye on geopolitics and macroeconomic data after the recent soft inflation print.

* US corporate earnings due include Alphabet (GOOG, GOOGL), Tesla (TSLA), GE Vernova (GEV), Intel (INTC), and American Express (AXP).

* Last week, technology was the worst-performing sector. The VanEck Semiconductor ETF (SMH), with net assets of $77.2 billion, fell to $556.53 on Friday from an intraday high of $671.83 on June 22, a decline of about 17%, implying chipmakers are on the doorstep of entering a bear market.

* Through Friday, almost 10% of S&P 500 firms had reported Q2 results, according to a Friday note from D A Davidson. So far, earnings have surged by around 51% year-over-year, ahead of the consensus for a jump of about 23% as of June 30. Most of this outperformance was skewed by a handful of semiconductor names.

* US Central Command completed the ninth consecutive evening of strikes against Iran on Saturday, according to a statement. CENTCOM assets targeted, among others, Iranian military command centers, air defense and coastal surveillance sites to "further diminish Iran's ability to attack commercial vessels and civilian mariners transiting the Strait of Hormuz," it said.

* Investors will watch out for further escalation, especially attacks on Iran's civilian infrastructure and Tehran's retaliation toward its Gulf neighbors, as well as the possibility of disrupting the Red Sea crude oil chokepoint.

* The week ahead will be quiet on the economic data front, with the Federal Reserve in its communication blackout period, a Jefferies note said Friday.

* Investors will closely monitor the S&P Global Composite PMI flash this week alongside ADP employment change and jobless claims to gauge the health of the US economy following the steepest drop in June's consumer price index since April 2020 last week and a consequent drop in market expectations for an interest rate increase this year.