It could be another record-breaking day for stocks

The Dow, S&P 500 and Nasdaq could hit new records for a second straight day on Tuesday, as hopes over a pause for the trade war is boosting investor sentiment.

Since the United States and China agreed a “phase one” trade deal in October, the progress seemed to have stalled as it remains unclear when and where the two parties will sign the agreement.

Still, there is good news: the United States is assessing current tariffs on Chinese imports as the parties work to finalize the “phase one” trade deal, according to officials. No decisions have been made beyond the previously announced tariff relief.

Stocks “look to extend the market’s rally amid growing optimism that, as part of phase one of trade talks, the US will suspend tariffs on $156 billion of Chinese imports scheduled to take effect on December 15 and possibly roll back the September 1 tariffs on about $110 billion in goods,” wrote Sal Guatieri, senior economist at BMO, in a note to clients.

With just under an hour until the market opens, futures are squarely in the green. Dow futures are up 0.3%, or 80 points, while futures for the S&P 500 and the Nasdaq Composite are up 0.2%, respectively.

All three indexes hit all-time highs on Monday, so any incremental gain will put them again in record territory.