Stocks stood flat to modestly higher as investors focused on U.S.-China trade talks and data showing a modest recovery in sentiment at smaller U.S. businesses.

One expert said he expected loosened controls on U.S. exports of semiconductors in exchange for China's releasing of more rare earths.

Stocks were buoyant and the dollar remained on guard on Tuesday as trade talks between the United States and China were set to extend to a second day, with tentative signs tensions between the world's two largest economies could be easing.