DOW : 14,447.29 Up 50.22(0.35%)

By: JeeYeon Park CNBC.com Writer
 

Stocks finished near session highs Monday, with the Dow posting another record closing high and the S&P 500 within 1 percent of its 2007 peak, as investors shrugged off earlier worries over disappointing economic data from China and weakness in Europe.

he Dow Jones Industrial Average rallied 50.22 points to end at 14,447.29, finishing at a fresh high, led by Boeing and Merck. The blue-chip index is up more than 10 percent for the year and on track for its biggest quarterly gain since the fourth quarter of 2011.

The S&P 500 edged up 5.04 points to finish at 1,556.22. The index is nearly 0.5 percent from its record closing high of 1,565.15, hit on October 09, 2007. The Nasdaq rose 8.51 points to close at 3,252.87.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, ended below 12 for the first time since April 2007.



Most key S&P sectors ended higher, led by financials, while telecoms finished in the red.

"We're in unchartered territory, but the higher this market goes without a pullback, the more investors have to be concerned that underneath the surface: risk begets risk," said Quincy Krosby, market strategist with Prudential Financial. "Last week was impressive and investors want to see the S&P 500 similarly make new highs. But the market's resting right now and it's waiting for further confirmation to move higher."