Both indexes reached record intraday highs on Monday as well.
The Dow finished up 64 points, or 0.18%, to 35,741, while the S&P 500 rose 0.47% and the Nasdaq climbed 0.90%.
Chris Larkin, managing director of trading with E*Trade Financial, said "stocks appeared to look past inflation concerns and rising interest rates last week, as Q3 earnings mostly continued to surprise to the upside and the broad market hit new all-time highs for the first time in more than six weeks."
"So, with the market demonstrating that it’s favoring earnings reports over economic reads, we could be in for a ride this week with a deluge of big tech earnings — some of the biggest market-cap companies out there," Larkin said. "And as we narrow in on the last week of trading for the month, the stock market is in a position to make a run at one of its better Octobers in recent years."
Around 165 S&P companies will report September quarter profits this week, including a host of big tech companies that comprise more than a fifth of the benchmark's overall weight: Facebook (FB) - Get Facebook, Inc. Class A Report, Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report, Apple (AAPL) - Get Apple Inc. (AAPL) Report, Amazon (AMZN) - Get Amazon.com, Inc. Report and Google parent Alphabet (GOOGL) - Get Alphabet Inc. Class A Report.
With 117 companies reporting so far, collective S&P 500 profits are set to rise 34.8% from last year to $430.3 billion, with fourth quarter earnings forecast to rise another 22.8% to $435.3 billion.
Ryan Detrick, chief market strategist for LPL Financial, the S&P 500 Index has gained more than 20% so far this year, making more than 50 record highs along the way.
"Certainly nobody should be upset with that return if that was all 2021 brought us," he said. "However, we see signs that there could be more gains to come in the final two months of the year."
Seasonal tailwinds, improving market internals, and clear signs of a peak in the Delta variant all provide potential fuel for equities heading into year-end, Detrick said, "and we maintain our overweight equities recommendation as a result.
Tesla surged after the electric vehicle maker passed the $1 trillion dollar mark amid a $4.4 billion order from rental giant Hertz Global (HTZ) - Get Hertz Global Holdings, Inc. Report and a price target boost from Morgan Stanley.
Pinterest (PINS) - Get Pinterest, Inc. Class A Report shares ended sharply lower after PayPal (PYPL) - Get PayPal Holdings Inc Report, which was linked to a $45 billion takeover of the social media company last week, said it is not pursuing an acquisition of the company.
Facebook finished higher, following a slip earlier in the session, after a trove of papers obtained by a company whistleblower that highlighted everything from concern over the declining interest of teen users on the social media platform to its role in the January Capitol riots were released ahead of the group's third quarter earnings