Dell gained after Icahn Enterprises said it had entered into a confidentiality agreement with the computer hardware maker and looked forward to commencing a review of the company.
BlackBerry surged 14 percent following news the company's highly anticipated BlackBerry Z10 will be sold through AT&T by March 22. The U.S. launch of the company's newest smartphone was delayed due to a longer carrier-testing phase.
Genworth rallied to lead the S&P 500 gainers after a Barron's article over the weekend said the mortgage insurer's stock could almost double in the next year, thanks to gains in mortgage and health-care pricing.
Among earnings, Dick's Sporting Goods tumbled after the sporting goods retailer missed quarterly expectations. The company said lower-than-expected sales of outerwear and cold weather accessories offset some positive trends in areas such as athletic footwear and apparel.
Apparel retailer Urban Outfitters is scheduled to post earnings after the closing bell.
"What's the catalyst for a pullback? Some internal deterioration and or when traders start to lose money buying every dip as the rally gets too extended and narrow," wrote Elliot Spar, market strategist at Stifel Nicolaus.
China's Shanghai Composite declined after data showing industrial production and retail sales in China for the January and February period missed expectations. In addition, inflation rose in February, igniting worries of potential monetary tightening. Meanwhile, Japan's Nikkei hit a new four-and-a-half year high, fueled by weakness in the yen.
(Read More: Why China's Yuan Is No Longer a Big Worry for US)
European shares traded lower, pulling back from four-year highs, dragged by banks on the heels of Italy's credit downgrade from Fitch to BBB-positive last Friday. The downgrade follows a week of political haggling after no party gained sufficient votes in a national election to form a government.
(Read More: Why Italy Could Be the Next 'Bad Boy of Europe')