(CNBC) -- Stocks rose on Tuesday after a report said the U.S. and China are seeking talks to defuse an escalating trade conflict between the two countries. Equities also posted their biggest monthly gains since the start of the year.
The Dow Jones Industrial Average jumped 107 points, with 3M, Caterpillar and Pfizer as the best-performing stocks in the index. The S&P 500 gained 0.5 percent as industrials rose more than 2 percent. The Nasdaq Composite advanced 0.6 percent.
Bloomberg News reported that the world's largest economies are trying to restart talks in order to avoid a full -blown trade war. The report, which cites two people familiar with the situation, said Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are talking privately about the matter. Mnuchin told CNBC last week "there continue to be some quiet conversations" regarding China.
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