Simon says AI! Microsoft rose on better-than-expected quarterly revenue and profit, driven by growth in its cloud computing and Office productivity software businesses. The company said its artificial intelligence (AI) products were stimulating sales, with its Azure cloud business reporting growth of 27% for the quarter. Microsoft CEO Satya Nadella said AI was now integrated into a wide array of products, including Bing, which has seen a jump in downloads since adding AI features. The company also revealed it had more than 2,500 Azure-OpenAI service customers. Revenue for the quarter rose 7% to $52.9bn, beating analyst estimates. The trend is clear that anything related to AI is the way forward, and Microsoft stands in the way of profit in providing the necessary processing power. The future is bright for the company, and it will shone brighter if it successful in releasing world's first Artificial General Intelligence (AGI). 

EQUITY

The S&P500 dipped 1.4% on Tuesday, as disappointing earnings from American corporations lowered investor confidence ahead of vital tech results. First Republic Bank's (FRC) shares fell 40% following mixed Q1 earnings and a greater contraction in deposits. UPS Inc also missed on its earnings and warned that sales would likely remain under pressure.

GOLD

Gold prices rose on safe-haven demand as lacklustre US corporate earnings and economic data fuelled fears of a potential recession. FRC decline in deposits raised concerns that banking crisis can retriggered. Despite uncertainty over monetary policy and a stronger dollar, gold's bullish outlook is based on increasing risk factors such as earnings risk, slower lending, financial stability concerns, and sticky inflation.

OIL

Oil prices rose after reports showed a fall in US crude oil and fuel inventories, indicating robust demand in the US. However, economic concerns and expectations of interest rate hikes are still weighing on the market after Tuesday's 2.17% drop. There is also concern in China where rumours says that there is another huge covid outbreak out of an auto show.

CURRENCY

The US dollar dipped slightly in early European trade amid worries about its economy and US banks, but recovered after First Republic Bank reported a $100 billion increase in customer withdrawals. Healthy earnings from tech giants boosted confidence, causing the greenback to fall, while the pound surged on expectations of another rate hike. The yen traded higher as investors focused on Tokyo inflation data and a BOJ meeting.