By Ragini Mathur
(Reuters) -Canada’s main stock index rose on Tuesday, as investors took a breather after the previous session’s decline that was triggered by U.S. President Donald Trump’s recent attacks on Federal Reserve Chair Jerome Powell.
The Toronto Stock Exchange’s S&P/TSX Composite Index rose 1.2% to 24,285.17 points, its highest level since April 3.
However, investors remained concerned about a market turmoil if Trump followed through on his threats to fire Powell, analysts said.
The TSX fell 0.7% on Monday, reflecting the stress in global markets, as the unprecedented move, if it happened, was seen undermining the Fed’s independence and inflation-fighting credibility.
“The bigger picture is markets are still quite concerned about the degree of uncertainty both around U.S. trade policy as well as monetary policy,” said Douglas Porter, chief economist at BMO Capital Markets.
“But Canada actually is seen as a little bit of a safer place to invest these days with a little bit less uncertainty than what we’re seeing out of the U.S.”
Including Tuesday’s moves, the TSX shed 1.7% in 2025, compared with 10.8% downfall on S&P 500 in the U.S.
On Tuesday, all major sectors traded in the green.
The healthcare sector was the top gainer with a 3.6% and was set to recoup the 4% loss on Monday.
Bausch Health Companies topped the benchmark index with a 9% jump after the pharmaceutical firm said billionaire Carl Icahn has a total economic exposure of about 34% to the company’s common shares. The stock had fallen 8% on Monday.
Energy shares climbed 1.9% as oil prices bounced back on Tuesday.
Heavyweight financials were also up 1.5%.
Looking ahead, Canadian retail sales data on Friday will offer insights into consumer spending patterns amid the uncertainty around U.S. tariffs.
This is also the final week of campaigning before Canada’s election on April 28, with Prime Minister Mark Carney maintaining his lead in the polls, pledging on a new economic order that is less reliant on the U.S.
(Reporting by Ragini Mathur in Bengaluru; Editing by Sahal Muhammed)
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