Wall Street posts modest gains in early trade

Major equity indexes in the United States started the day in the positive territory and extended their gains in the early trade boosted by improved market sentiment. At the moment, the Dow Jones Industrial Average is up 0.33% on the day while the S&P 500 and the Nasdaq Composite are gaining 0.45% and 0.4%, respectively.

Latest comments on the U.S.-China trade talks and recovering Treasury bond yields seem to be helping the risk-appetite return to markets. In fact, the CBOE Volatility Index, Wall Street's fear gauge, is down more than 3% to confirm the risk-on mood.

Earlier in the day, a spokesman for China's Commerce Ministry noted that sides have achieved progress in the latest phone calls between Vice-Premier Liu He and his American counterparts, and added a full day of talks was scheduled on Friday between Liu He and the U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

Additionally, White House economic advisor Kudlow told CNBC that "some, not all" tariffs on Chinese imports could stay in place and added that trade negotiations were "policy, not time-driven."

The trade sensitive S&P 500 Materials and Industrials indexes were adding 0.83% and 0.63% on the day, respectively. On the other hand, the defensive Utilities Index was underperforming with a daily loss of 0.8%.