It is narrated from Alqamah (may Allah have mercy on him), he said: Sayyiduna Abdullah (may Allah be pleased with him) greeted the Dhimmi chiefs with a gesture.
Hadith Referenceالادب المفرد / كتاب أهل الكتاب / 1104
It is narrated from Sayyiduna Anas (may Allah be pleased with him), he said that a Jew passed by the Prophet (peace and blessings be upon him) and said: «السام علیکم» (May death be upon you). The Companions replied to the greeting, so the Prophet (peace and blessings be upon him) said: "He has said «السام علیکم»." The Jew was caught and he admitted it. The Prophet (peace and blessings be upon him) said: "You should also reply to him in the same way."
Hadith Referenceالادب المفرد / كتاب أهل الكتاب / 1105
Hadith Gradingالألبانی:صحيح
Hadith Takhrij«صحيح : أخرجه الترمذي ، كتاب تفسير القرآن : 3301 و مسلم : 2163 و أبوداؤد : 5207 و النسائي فى الكبرىٰ : 10147 و ابن ماجه : 3697 مختصرًا»