Wall Street equities declined Wednesday, as gains from the US-Iran peace agreement announced over the weekend waned and investors reassessed the outlook amid lingering uncertainties. The S&P 500 index slipped 0.3% by early afternoon trading in New York, while the tech-focused Nasdaq Composite dropped 0.5%, weighed down by a pullback in the semiconductor sector. The Philadelphia Semiconductor Sector index fell 3.5%, reversing some of Monday’s record highs.

Major technology companies saw notable declines, with chipmaker Nvidia falling 1.7% and Microsoft retreating 1.6%. In contrast, SpaceX surged more than 8%, boosting its market capitalization to approximately $2.7 trillion and surpassing Amazon to become the world’s fifth most valuable company.

Analysts offered cautious assessments of the market’s reaction following the ceasefire extension between the United States and Iran, which was announced late Sunday. Jim Reid, global head of macro and thematic research at Deutsche Bank, described the market as having "stabilised" following the initial optimism but noted significant uncertainties remain regarding the deal’s implementation, given the absence of full details or official texts. UBS analysts echoed this view, observing that investor enthusiasm had softened as they evaluated the sustainability of the initial relief rally.

The ceasefire agreement and the potential reopening of the Strait of Hormuz prompted a broad-based rally on Monday, including gains in equities and government bonds. The deal also triggered an oil price slump as traders anticipated increased crude flows through the strategic waterway. Brent crude, the international benchmark, traded below $80 per barrel Wednesday for the first time since early March, when the conflict began.

European markets recorded modest gains amid positive movements in financial and industrial sectors. The pan-European Stoxx Europe 600 index increased 0.3%, while London’s FTSE 100 rose 0.6%, Paris’s CAC 40 advanced 0.8%, and Frankfurt’s Xetra DAX edged up 0.1%.

Government bond yields declined slightly, with the yield on 10-year US Treasuries dropping four basis points to 4.43% as investor demand for safe-haven assets increased. Currency markets saw the US dollar weaken 0.1% against a basket of major currencies. The euro gained 0.2% against the dollar to $1.1612, and the British pound strengthened 0.1% to $1.3428.

Precious metals showed mixed results, with gold extending its recent gains by climbing 0.9% to $1,344 per troy ounce, while silver retreated 0.3% to $70.25 per troy ounce.