(Reuters) - U.S. stocks stepped back from peak levels on Monday as investors took a breather as they anticipated a U.S. Federal Reserve interest rate cut this week and looked for signs of progress from U.S.-China trade negotiations, currently under way in Shanghai.

The Dow Jones Industrial Average .DJI rose 28.96 points, or 0.11%, to 27,221.41, the S&P 500 .SPX lost 4.88 points, or 0.16%, to 3,020.98, and the Nasdaq Composite .IXIC dropped 36.88 points, or 0.44%, to 8,293.33.