By Dan Strumpf

U.S. stocks eked out record highs Monday, as investors continued to cheer easy-money policies globally.

The Dow Jones Industrial Average rose 7.84 points, or less than 0.1%, to 17817.90, notching its 29th record close of the year. The S&P 500 index tacked on 5.91 points, or 0.3%, to 2069.41, its 46th record finish of 2014.

The Nasdaq Composite Index rose 41.92 points, or 0.9%, to 4754.89.

A decline in the telecommunications sector weighed on the Dow, with Verizon Communications Inc. shedding 1.4% after analysts at Citigroup Inc. downgraded the stock. Fellow Dow component AT&T lost 1.6%.

Investors prepared for a quiet week given the coming Thanksgiving holiday. Traders said Thursday's meeting of the Organization of the Petroleum Exporting Countries and early readings on retailers' Black Friday results could give some direction to shares later in the week, but most investors expect subdued market activity in the days ahead.

"Nobody's going to take risk or take positions ahead of [Thanksgiving]," said David Seaburg, head of sales trading at Cowen and Co. in New York. "We're looking at a very light couple of days."

Elsewhere in the market, Dow component United Technologies fell 1.4% after the industrial conglomerate's chief executive unexpectedly stepped down. Retail shares rose, with the S&P 500 Consumer Discretionary index up 0.9%.

Investors expect modest gains in stocks for the remainder of the year, boosted by easy-money policies globally and signs of measured economic improvement in the U.S. The Dow has gained nearly 11% and the S&P is up nearly 15% over the last 12 months. While the Fed is eyeing an increase in interest rates, other major central banks are accelerating easing actions as they fight slowing growth.

Economic news was light Monday. Later this week, investors will watch for the second reading on third-quarter gross domestic product, a report on consumer spending for October and the Federal Reserve's preferred gauge of inflation.

Investors are likely to keep a close eye on Thursday's OPEC meeting for signs of how the cartel plans to respond to the steep slide in oil prices. Tumbling crude prices have knocked shares of U.S. energy companies in recent months.

"We've been trading on macro data points lately," said Brian Fenske, head of sales trading at brokerage firm ITG. "Post earnings, we revert back to macro data points, and that's what's happening."

European stocks advanced, with the pan-European Stoxx Europe 600 index adding 0.1% in a second-day lift after European Central Bank President Mario Draghi underscored the need to raise inflation in the eurozone "without delay." Those remarks were widely interpreted as a sign that the ECB could take further steps to fight low inflation.

Chinese and Hong Kong stocks rallied in response to the surprise interest-rate cut from the People's Bank of China, which was announced Friday after most Asian stock markets had closed. The cut was China's first to borrowing costs in more than two years and boosted optimism about the growth outlook for the world's second-biggest economy.

"China is recognizing that their growth rate is slowing, and they're doing what they can to combat that through monetary policy," said Michael Farr, president of Farr, Miller & Washington, which manages about $1.1 billion. "Europe to me is beginning to face...what looks like a reasonably certain recession, and Draghi keeps stepping up to the plate."

Mr. Farr said he has been looking to take profits on winning stocks in his portfolio following strong gains this year, but he said finding inexpensive stocks to take their place is a challenge. "I can't find stuff that's cheap enough to buy," he said. "I'm really struggling to stay invested."

The yield on the 10-year Treasury note, which moves inversely with its price, fell to 2.308%.

In commodity markets, crude-oil futures fell 1% to $75.78 a barrel. Gold futures fell 0.2%, to $1195.50 an ounce.

Deal news attracted attention on Monday. Reinsurance firm RenaissanceRe Holdings Ltd. agreed to buy Platinum Underwriters Holdings Ltd. in a stock-and-cash deal worth more than $1.9 billion. Shares of RenaissanceRe fell 2.7% and those of Platinum Underwriters surged 21%.

Drug maker BioMarin Pharmaceutical Inc. said it agreed to pay up to $840 million to buy Dutch company Prosensa Holding NV, a biopharmaceutical company that currently has no market products. The deal represents a bet that Prosensa will get regulatory approval for a muscular dystrophy drug. Shares of BioMarin gained 2.5%.

Write to Dan Strumpf at daniel.strumpf@wsj.com

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