Investors heaved a sigh of relief as signs emerged of progress in easing China-U.S. trade tensions, sending U.S. stocks higher on Tuesday morning.

The Dow Jones Industrial Average jumped more than 200 points as trading opened, while the S&P 500 Index climbed nearly 1.3%. The Nasdaq Composite rose 1.2%.

U.S. President Donald Trump hinted at progress in trade talks with China in a tweet Tuesday morning.

"Very productive conversations going on with China! Watch for some important announcements!" the president tweeted.

China’s Vice Premier Liu He spoke on the phone with top U.S. trade officials Tuesday, suggesting that high-stakes trade negotiations are continuing despite diplomatic tensions over the arrest of a Chinese telecom giant’s senior executive.

Bloomberg reported Tuesday that China's government would consider slashing tariffs on U.S. car imports to 15% from 40% as part of a trade deal.