Investing.com - Canada’s main stock exchange rose on Tuesday, after fears over the independence of the Federal Reserve weighed on equities in the prior session.

By 11:45 ET, the S&P/TSX 60 index had advanced by 18 points, or 1.3%.

The Toronto Stock Exchange ’s composite index gained 283.8 points or 1.2% in Tuesday’s trading. The Index slipped by 0.7% on Monday, ending a five-day winning streak.

Recent remarks from the White House have seemed to suggest that officials were mulling possibly ousting Jerome Powell from his role as Fed Chair.

U.S. President Donald Trump himself has also hit out at Powell, calling him a "major loser" and "Mr. Too Late" and arguing that he has not moved fast enough to slash interest rates to support the broader economy.

The Wall Street Journal has reported that Trump may be laying the groundwork to blame the Fed leader for any economic weakness resulting from the president’s tariff policies.

Concerns have grown that should Trump fire Powell, whose term ends in May of 2026, jitters in financial markets -- which have already been shaken by Trump’s levies -- will intensify.

Meanwhile, in Canada, traders are keeping tabs on the final week of campaigning before key elections on April 28.

Voters examined Conservative Party Leader Pierre Poilievre’s costed platform, released on Tuesday. This follows the release of Prime Minister Mark Carney’s costed platform, which occurred on Saturday.

U.S. stocks edge higher

U.S. stock indexes jumped higher Tuesday, bouncing after the previous session’s sharp fall as investors awaited the latest results from electric vehicle giant Tesla.

At 11:50 ET, the Dow rose 790.7 points, or 2.1%, the S&P gained 106.3 points, or 2%, and the Nasdaq climbed 342.2 points, or 2.2%.

The main equity indices closed firmly lower Monday, with the S&P 500 falling 2.4%, the Nasdaq Composite sliding 2.6%, and the Dow Jones Industrial Average dropping 2.5%.

The quarterly earnings season continues Tuesday, with aerospace manufacturer Lockheed Martin (NYSE: LMT ), consumer goods conglomerate 3M Company (NYSE: MMM ), GE Aerospace (NYSE: GE ) and telecom giant Verizon Communications (NYSE: VZ ) are scheduled to unveil returns.

However, most eyes are on Tesla (NASDAQ: TSLA ), with the EV maker set to release its latest numbers after the close - the first of Wall Street’s so-called Magnificent Seven to report this earnings season.

Analysts are bracing for a negative quarter, as Tesla grapples with tepid demand and a backlash to CEO Elon Musk’s political activities.

Gold touches fresh record high

Gold prices surged to a new record high, buoyed by sustained safe-haven appeal over elevated U.S.-China trade tensions, and fears around Trump’s possible push to overhaul the Fed.

As of 12:00 ET, XAU/USD had jumped 0.1% to $3,427.88 per ounce, while gold futures expiring in June had risen by 0.5% to $3,440.76 an ounce.

Gold soared by more than 3% on Monday and has hit consecutive record highs in the previous three sessions, driven largely by escalating geopolitical risks, strong central bank demand, and persistent inflation fears.

Oil rebounds

Oil prices gained Tuesday, recovering somewhat after sharp losses on Monday, although caution remains amid global economic uncertainty driven by U.S. trade tariffs.

At 12:00 ET, Brent futures climbed 2.3% to $67.81 a barrel, and U.S. West Texas Intermediate crude futures rose 2.7% to $64.10 a barrel.

Both benchmarks had settled more than 2% lower on Monday after Iran and the U.S. agreed to commence expert-level discussions to design a framework for a potential nuclear deal.

(Scott Kanowsky also contributed to this article)