Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

STRONGER FUNDAMENTALS SET THIS MARKET APART FROM THE DOT-COM BUBBLE

There’s been a lot of chatter lately comparing today’s market to the late-1990s dot-com bubble. And sure, the excitement around artificial intelligence does feel familiar. But according to Philip Palumbo, founder, CEO and chief investment officer of Palumbo Wealth Management, the similarities only go so far.

In his view, this market isn’t being driven by pure speculation -- it’s being driven by earnings. That’s a key difference from the dot-com era, when stock prices raced far ahead of reality. Back then, investors piled into companies with little or no profits, betting that future growth would justify sky-high valuations.

Today, Palumbo argues, the foundation looks much healthier. Corporate America is delivering real earnings growth, and it’s not just coming from the usual tech heavyweights. He points to broad-based strength across sectors like industrials, financials, energy, healthcare, and parts of consumer.

That matters because rallies backed by rising profits, improving margins, and stronger cash flows tend to be more durable. In other words, this isn’t just hype -- there’s substance underneath it.

Of course, he’s quick to note that markets never move in a straight line. Pullbacks are normal. But zooming out, he believes we could still be in the early stages of something much bigger: what he calls the “AI Industrial Revolution.”

He argues AI isn’t just another trend -- it has the potential to reshape everything from productivity and margins to manufacturing, logistics, and healthcare over the next decade. Therefore, companies that pair strong fundamentals with leadership are likely to keep winning over the long run.

Palumbo's bigger message to investors is simple: don’t get caught up in every headline or short-term swing. If the fundamentals haven’t changed, your investment thesis probably shouldn’t either. Historically, some of the most successful investors have been the ones who stayed patient -- and let strong businesses compound over time.

(Terence Gabriel)

*****

EARLIER ON LIVE MARKETS:

MONDAY DATA: PMI CAGE MATCH, CONSTRUCTION SPENDING CLICK HERE

MORGAN STANLEY SAYS THERE IS LIFE BEYOND AI AND HORMUZ IN MARKETS CLICK HERE

THE DATA, DOLLARS AND DRAMA OF THE 2026 FIFA WORLD CUP CLICK HERE

WALL STREET STOCKS SLIP WITH SIGNS OF US-IRAN PEACE EFFORTS STALLING CLICK HERE

AI UPTAKE REMAINS UNEVEN AMONG US FIRMS, GOLDMAN SAYS CLICK HERE

MOMENTUM EXTENDS LEAD AS STOCKS LOG ANOTHER SOLID MONTH CLICK HERE

JAPANESE DEBT FOCUS 'MISPLACED' - COMMERZBANK CLICK HERE

ANY ECB DOVES AROUND? CLICK HERE

A FAMILIAR PICTURE CLICK HERE

BEFORE THE BELL: MUTED START TO JUNE CLICK HERE

WHO NEEDS OIL WHEN THERE'S AI TO BUY? CLICK HERE