Wall Street's initial pullback reflected concerns over the Federal Reserve's independence after Fed Chair Jerome Powell disclosed that the Department of Justice had served the central bank with grand jury subpoenas, potentially leading to criminal charges. Powell said the subpoenas relate to his June testimony before the Senate Banking Committee about a $2.5 billion renovation of several historic Fed buildings, calling the move 'unprecedented' and linking it to President Donald Trump's pressure on the Fed to cut rates.

Analysts noted that markets fear any erosion of Fed independence could stoke inflation, even as investors remain optimistic about the interest rate outlook. Traders still expect the Fed to keep rates unchanged at its upcoming meeting but anticipate a potential quarter-point cut later this year.

Computer hardware stocks turned in some of the market's best performances , with the NYSE Arca Computer Hardware Index spiking by 5.0 percent. A sharp increase by the price of gold also contributed to substantial strength among gold stocks, as reflected by the 3.5 percent surge by the NYSE Arca Gold Bugs Index. Steel and networking stocks moved upwards over the course of the session while weakness remained visible among airline and oil service stocks.

Asia-Pacific stocks moved mostly higher while Japan's Nikkei 225 Index shot up by 1.6 percent, China's Shanghai Composite Index jumped by 1.1 percent. Most European stocks also moved to the upside on the day. The German DAX Index climbed by 0.6 percent and the U.K.'s FTSE 100 Index rose by 0.2 percent, although the French CAC 40 Index bucked the uptrend and closed just below the unchanged.

In the bond market, treasuries regained some ground after an early slump but still ended the day in negative territory. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, increased by 1.6 bps to 4.18 percent.

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