The S&P 500 advanced as much as 0.8% on Monday after President Trump said he will delay the March 1 trade deadline as negotiations with China have progressed favorably. The benchmark index, however, steadily retreated throughout the session, ultimately finishing higher by 0.1%.

The Dow Jones Industrial Average (+0.2%), the Nasdaq Composite (+0.4%), and the Russell 2000 (-0.1%) also finished near their session lows.

President Trump followed up with a tweet during late trading action that U.S.-China talks are in advanced stages, but he did not provide a new deadline or any further details. Still, growing expectations for a trade deal underpinned the leadership from the S&P 500 cyclical sectors. 

The S&P 500 materials (+0.7%), information technology (+0.5%), financials (+0.4%), and industrial (+0.4%) sectors outperformed the broader market. 

Shares of semiconductor companies, many of which have revenue exposure to China, also outperformed and helped lift the heavily-weighted tech sector. The Philadelphia Semiconductor Index increased 0.8%.

General Electric (GE 10.82, +0.65, +6.4%) gave the industrial sector a boost after it agreed to sell its biopharma business to Danaher (DHR 123.15, +9.67, +8.5%) for $21.4 billion, which includes $21 billion in cash. General Electric had surged 15.5% in the opening minutes of trading but, like the broader market, finished near its session low.

Conversely, the real estate (-0.8%), utilities (-0.6%), consumer staples (-0.5%), and consumer discretionary (-0.3%) sectors finished the session with losses. The underperformance from the consumer discretionary sector was a drag on the broader market considering it was up as much as 0.7% in the opening minutes of trading.

U.S. Treasuries closed on a lower note, pushing yields higher across the curve. The 2-yr yield increased three basis points to 2.51%, and the 10-yr yield increased two basis points to 2.67%. The U.S. Dollar Index declined 0.1% to 96.42. WTI crude lost 3.1% to $55.45/bbl.

Separately, Wholesale Inventories for December increased 1.1% (Briefing.com consensus +0.4%). The November reading was revised up to 0.4% from 0.3%.

Looking ahead, investors will receive Housing Starts and Building Permits for December, the Conference Board's Consumer Confidence Index for February, the S&P Case-Shiller Home Price Index for December, and the FHFA Housing Price Index for December on Tuesday.

• Russell 2000 +17.8% YTD
• Nasdaq Composite +13.9% YTD
• Dow Jones Industrial Average +11.9% YTD
• S&P 500 +11.5% YTD