The 30-stock Dow rose 27.86 points to 25,998.92 as Boeing and Caterpillar contributed the most to the gains. The Dow's gains were capped by steep losses in 3M shares. The broad S&P 500 gained just 0.04 percent to close at 2,888.92, led by more than 1 percent jumps in telecommunications and consumer staples.
The U.S. is in the process of proposing a new round of trade talks with China in the near future, sources told CNBC. Dow Jones first reported the news.
Boeing and Caterpillar, two bellwethers for global trade, rose 2.4 percent and 1.6 percent, respectively on the news. United Technologies climbed 0.2 percent.
The news sent the Dow and S&P 500 to their session highs. The Dow rose as much as 174.66 points, while the S&P 500 gained as much as 0.2 percent.
Quincy Krosby, chief market strategist at Prudential Financial, said this is a positive for the market, but added: "We'll need to see some follow-through to take trade out of the risk column."
Prior to Wednesday's report, trade tensions between the two largest economies in the world have been increasing.
China will seek permission from the World Trade Organization to inflict sanctions upon the U.S. as tensions between the two largest global economies continue. Last Friday, President Donald Trump told reporters that he was "ready to go" on hitting China with tariffs on an additional $267 billion of goods, on top the tariffs on $200 billion in goods he has threatened.
The tensions pushed the S&P 500 off a record level reached late last month. Pressure in tech shares also contributed to the index's easing from the all-time high. The S&P 500 tech sector is down 2.3 percent this month.