(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Indexes: Dow down 0.05%, S&P 500 up 0.17%, Nasdaq up 0.28%

*

Second day of US-China trade talks being held in London

*

Tencent Music to buy Chinese audio platform Ximalaya for

$2.4

bln

(Updates after markets open)

By Kanchana Chakravarty and Sukriti Gupta

June 10 (Reuters) - Wall Street's main indexes were

mixed on Tuesday as investors awaited the outcome of ongoing

trade talks between the United States and China aimed at cooling

a tariff dispute that has bruised global markets this year.

U.S. Commerce Secretary Howard Lutnick said trade talks with

China were going well as officials from the two sides met for a

second day in London.

Investors are hoping for an improvement in ties after the

relief around a preliminary deal struck last month gave way to

fresh doubts when Washington accused Beijing of blocking exports

critical to sectors such as aerospace, semiconductors and

defense.

White House economic adviser Kevin Hassett said on Monday

the U.S. was likely to agree to lift export controls on some

semiconductors in return for China speeding up the delivery of

rare earths.

"I think these issues will be resolved, but I think it's

still early days ... but the fact that they're talking certainly

is positive," said Mark Malek, chief investment officer at

Siebert Financial.

"We're not making progress yards at a time, but inches

at a time."

At 10:03 a.m. ET, the Dow Jones Industrial Average

fell 20.22 points, or 0.05%, to 42,742.88, the S&P 500

gained 10.30 points, or 0.17%, to 6,016.18 and the Nasdaq

Composite gained 53.92 points, or 0.28%, to 19,645.16.

Seven of the 11 major S&P 500 sub-sectors rose, led by

energy with a 1.7% gain, tracking strength in oil

prices. Communication services stocks added 0.9%.

U.S. equities rallied sharply in May, with the S&P 500 index

and the tech-heavy Nasdaq marking their best

monthly gains since November 2023, helped by upbeat earnings

reports and a softening of President Donald Trump's harsh trade

stance.

The S&P 500 remains about 2% below all-time highs touched in

February, while the Nasdaq is about 2.6% below its record peaks

reached in December.

Investors are awaiting U.S. consumer prices data on

Wednesday for clues on the Federal Reserve's rate trajectory.

The World Bank slashed its global growth forecast for

2025 by 0.4 percentage point to 2.3%, saying higher tariffs and

heightened uncertainty posed a "significant headwind" for nearly

all economies.

Shares of McDonald's fell 1.4%, weighing on the

blue-chip Dow Index, after a report Redburn Atlantic downgraded

the fast-food giant to "sell" from "buy".

Most megacap and growth stocks were mixed. Tesla

shares advanced 2.6%.

Insmed ( INSM ) shares jumped 27.7% after the drugmaker said

its experimental drug significantly reduced blood pressure in

the lungs and improved exercise capacity in patients in a

mid-stage study.

U.S.-listed shares of Tencent Music Entertainment Group

advanced 2.2% after the Chinese company said it would

buy domestic long-form audio platform Ximalaya for

about $2.4 billion in cash and stock.

Advancing issues outnumbered decliners by a 2.52-to-1

ratio on the NYSE and by a 1.76-to-1 ratio on the Nasdaq.

The S&P 500 posted 7 new 52-week highs and one new low while

the Nasdaq Composite recorded 42 new highs and 29 new lows.