Stocks were buoyant and the dollar remained on guard on Tuesday as trade talks between the United States and China were set to extend to a second day, with tentative signs tensions between the world's two largest economies could be easing.

S&P 500 traded near the benchmark's record highs as talks provide a glimmer of hope for a US-China trade deal.

U.S. stocks drifted through a quiet day of trading as the world’s two largest economies began talks on trade that could help avoid a recession.