By Anora Mahmudova and Barbara Kollmeyer, MarketWatch Oil prices spike and fall amid heightened volatility

NEW YORK (MarketWatch) -- U.S. stocks finished a thinly-traded day with modest gains on Monday, that nonetheless sent the main benchmarks to close at record levels for the fourth straight session.

Commodity prices took center stage, with both gold and oil futures dropping sharply on Monday.

The S&P 500 (SPX) closed at a new record high, adding 6.34 points, or 0.3%, higher at 2,038.26.

The Dow Jones Industrial Average (DJI) also reached a record level, adding 39.81 points, or 0.2%, to 17,613.74.

The Nasdaq Composite (RIXF) rose 19.08 points, or 0.4%, to 4,651.62, the highest level since March 2,000. The index was helped by big gains in the biotech and internet stocks.

The main benchmarks crept steadily up, rising for the past four sessions, while volatility on the main benchmark, as measured by the CBOE Vix index fell to its lowest level in seven weeks.

Randy Frederick, Managing Director of Trading and Derivatives at the Schwab Center for Financial Research, said falling oil prices will have a net positive effect on the economy.

"Falling oil prices will dent earnings of energy related companies, but lower gasoline prices will free up consumer spending. The consumer component of GDP far outweighs the corporate component," Frederick said.

However, he cautioned that the quick and robust recovery, amid heightened optimism and very low volatility have created an environment in which event-driven pullbacks are likely to be more severe.

Need to Know: Stocks overvalued by 100% or a new secular bull market?

Gold prices (GCZ4) fell $19 to $1,151 an ounce on Monday. Oil (CLZ4) prices spiked as much as 2% amid reports of renewed fighting in eastern Ukraine, but settled 1.7% lower.

Stocks to watch: Dendreon Corp.'s (DNDN) shares plunged on Monday, wiping out more than 80% of its market share, after reports indicated that the cancer-treatment maker announced that it filed for Chapter 11 bankruptcy.

General Motors Co.(GM.XX) shares fell 1.5% after The Wall Street Journal reported the auto maker ordered a half-million replacement ignition switches to fix Chevrolet Cobalts and other small cars nearly two months before it let federal safety regulators know there was a problem.

GoPro's stock (GPRO) slumped 4.2% after the maker of wearable video cameras announced plans to sell $800 million shares of Class A common stock to the public.

See Movers & Shakers.

Hong Kong stocks rally on Stock Connect: A bright spot across global markets Monday was in Hong Kong, where the Hang Seng rose 0.8% after regulators said the Stock Connect program, which allows individual investors outside of China to buy Shanghai-listed shares for the first time ever, will start Nov. 17.

A batch of Chinese economic data showed in-line inflation and export growth that slowed from a year earlier, though it beat forecasts.

Europe stocks closed higher, while the dollar(DXY) strengthened.

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