US Wall Street stocks are up after two consecutive days of decline.
All three major indexes rose on reports that the US and the Republic of China will hold trade talks this week.
The S&P 500 index rose 0.7%, the Dow Jones strengthened 0.6% while the technology-focused Nasdaq rose 0.6%.
Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will meet with China's top economic officials on May 8 in Switzerland.
The two politicians will also meet with Swiss President Karin Keller-Sutter to discuss bilateral trade issues.
The talks signal the potential for a recovery in US-China relations, although US President Donald Trump has previously said he is in no rush to sign a trade deal.
Next, investors await guidance from Federal Reserve (Fed) Chairman Jerome Powell's speech at the FOMC meeting with the interest rate decision due at 2am on Thursday.
The Fed is expected to keep interest rates on hold amid heightened uncertainty over the US economy due to Trump's trade tariffs, but the option for a rate cut remains open.
In short, investors are happy with the progress of the US-China talks and are looking forward to the outcome of the latest Fed policy meeting.
