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US stocks gain on better sentiment over trade talks

Wall Street stocks jumped early Wednesday following reports that a limited US-China trade deal is possible ahead of this week's negotiations.

Major indices had lost more than one percent on Tuesday after new US sanctions on Chinese entities prompted a brusque response from Beijing, setting a harsh tone ahead of high-level trade talks due to begin Thursday.

But media reports early Wednesday said Beijing was still open to a pared-down agreement that could link Beijing to higher agricultural purchases in exchange for a hold on new US tariff measures.

About 20 minutes into trading, the Dow Jones Industrial Average was up 0.5 percent at 26,296.68.

The broad-based S&P 500 gained 0.6 percent to 2,911.11, while the tech-rich Nasdaq Composite Index advanced 0.8 percent to 7,882.64.

Investors are looking ahead to the release of Federal Reserve meeting minutes about the Fed's most recent interest rate cut that could shed light on the likelihood of additional rate cuts.

Among individual companies, Johnson & Johnson fell 0.9 percent after a jury in Pennsylvania ruled the company should pay $8 billion in punitive damages over the psychiatric drug Risperdal. The company said it would appeal.