The S&P 500 ended slightly lower on Monday as investors looked for signs of de-escalation in the Middle East ahead of earnings reports from major technology companies later this week.

Second-quarter earnings season is set to gather pace, with results from companies such as Alphabet, Tesla and Intel. This will provide a broader view of corporate health after an initial wave of reports, mostly from the financial sector. Peter Tooze of Chase Investment Counsel said investors appear to have been left behind by key updates from technology, energy and consumer-focused companies.

Geopolitical tensions remained at the centre. Yemen’s Iran-aligned Houthis announced a naval blockade of Saudi Arabia, opening a new front in the US-Iran conflict and posing threats to global energy supplies and trade. However, a senior Iranian official indicated that mediators have proposed a 10-day ceasefire to ease tensions and revive the recent interim agreement.

Market participants are increasingly sensitive to regional developments. Joe Quinlan of Merrill and BofA Private Bank noted that any move toward easing conflict could help stabilize oil and gasoline prices, easing pressure on consumers. At the same time, investors are ahead of earnings, with S&P 500 profits expected to rise 26% year over year in the second quarter, according to LSEG data.

Semiconductor companies such as Intel and Texas Instruments will also be in focus, especially after the Philadelphia Semiconductor Index confirmed a bear-market decline, down more than 20% from its late June peak. Encouraging results from chipmakers could help restore confidence in the sector.

In market action, the S&P 500 fell 0.18% to 7,444.19, while the Nasdaq Composite fell 0.04% to 25,510.27. The Dow Jones Industrial Average fell 0.57% to 51,848.96.

In individual stocks, Alphabet gained after reports that its Google unit is developing a Gemini-integrated server chip to improve AI functionality. Domino’s Pizza also rose after its quarterly revenue slightly beat Wall Street expectations.