U.S. stock indexes were set for strong opening gains on Tuesday, buoyed by signs of progress in talks between Russia and Ukraine to end their weeks-long conflict.

Moscow has decided to drastically cut military activity focused on Kyiv and Chernihiv in Ukraine, its deputy defense minister said, after talks between Russian and Ukrainian negotiating teams in Istanbul.

European stocks rallied, Brent crude prices fell toward $107 a barrel and safe-haven gold tumbled 1% on the news.

"It'll drive optimism (in stock markets) because it shows that both sides are talking and as a result that there will likely be some sort of conclusion in the near term," said CFRA Research's chief investment strategist Sam Stovall.

Kyiv proposed adopting neutral status in exchange for security guarantees, meaning it would not join military alliances or host military bases, Ukrainian negotiators said.

Russia's invasion, which began on Feb. 24, has powered commodity and metal prices, fueling concerns about rising inflation at a time when the U.S. Federal Reserve and other major central banks withdraw stimulus put in place during the COVID-19 pandemic.

While all the three major U.S. indexes are on course to end March higher, they are set to record their worst quarter since the first three months of 2020 when the pandemic wreaked havoc on financial markets.

At 08:26 a.m. ET, Dow e-minis were up 291 points, or 0.83%, S&P 500 e-minis rose 39.25 points or 0.86%, and Nasdaq 100 e-minis jumped 167.25 points or 1.1%.

Strong economic data and gains in megacap stocks have supported a recent recovery in U.S. stocks even as bond markets flash signals of a possible recession.

The spread between U.S. 2-year and 10-year Treasury yields narrowed below six basis points, moving another step closer to inversion, as traders bet that faster rate hikes would hurt the U.S. economy over the longer term.

Tesla rose 1.8% in premarket trading, set to extend gains from the previous session following news about stock split plans. Other megacap companies like Meta Platforms Inc, Apple Inc, Amazon.com Inc, Alphabet Inc and Microsoft Corp gained between 0.7% and 1.1%.

Wall Street's fear gauge, the CBOE Volatility index, slipped to 18.99 points, its lowest since mid-January.

FedEx Corp gained 3% after naming its operating chief, Raj Subramaniam, as the chief executive officer, replacing the global delivery conglomerate's founder Fred Smith.

(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur and Sriraj Kalluvila)