فَإِنَّ مَعَ ٱلْعُسْرِ يُسْرًا * إِنَّ مَعَ ٱلْعُسْرِ يُسْرًۭا
“For indeed, with hardship [will be] ease. Indeed, with hardship [will be] ease.” (Qur’an, 94:5-6)
Market Snapshot
▼ S&P 500 -0.17%
▼ SPUS -0.99%
▼ MSCI World Islamic -1.08%
*Market data for last week ending Friday
Last Week’s Review
Tech Giants Navigating Mixed Signals
- Alphabet saw a 12% revenue increase with Google Cloud growing 30%. While advertising remained strong, slower cloud growth signals rising competition from Microsoft and AWS, potentially limiting future margin expansion.
- Amazon reported $187.79B in revenue, up 10%, with AWS contributing $28.79B but missing forecasts. Consumer spending remains resilient, but AWS slowing could indicate businesses tightening cloud budgets, impacting tech infrastructure growth.
- AMD’s 24% revenue jump was driven by 69% growth in data center sales, but results fell short of forecasts. This suggests AI-driven chip demand remains high, yet competitive pressures from Nvidia and Intel may limit AMD’s pricing power in the long run.
This Week’s Outlook
China’s New Tariffs on U.S. Goods (Effective February 10):
China has imposed retaliatory tariffs on $14 billion worth of U.S. imports, including 15% on coal/LNG and 10% on crude oil, agricultural machinery, and automobiles. Additionally, China is restricting exports of critical minerals vital for defense and clean energy industries. This move escalates trade tensions and may impact global supply chains, energy markets, and U.S. industrial exports.
Federal Reserve Chair Jerome Powell’s Testimony (February 11–12):
Fed Chair Jerome Powell will testify before Congress, addressing economic conditions and monetary policy outlook. With recent rate cuts totaling 100 basis points and a pause in January, investors are eager for any clues about potential future cuts. Powell’s remarks could sway market sentiment and shape expectations for the Fed’s next policy moves.
Super Micro Computer (SMCI) Earnings Report (February 11):
Super Micro Computer will release its fiscal Q2 earnings, with analysts expecting $5.94B in revenue. The company faces pressure after delaying its annual report, receiving a Nasdaq compliance extension until February 25. However, strong AI demand and its ramped-up production of AI server solutions could drive long-term growth. Investors will watch closely for any updates on regulatory issues and forward guidance.
Curated Reads
Eagles Win the Super Bowl—But Markets Aren’t Worried
With the Eagles’ Super Bowl victory, many retail investors are sharing an old market superstition—Philly sports championships and stock market declines. The 1929 crash followed a Philadelphia World Series win; the Eagles’ 2018 title preceded the worst year for stocks since 2008, but there’s no actual correlation here. Markets have bigger things to focus on this week; simply put, Jerome Powell, not Jalen Hurts, is driving the next move for stocks. While fans celebrate, investors should keep their focus on economic fundamentals. [Read]
Coal Demand Surges Despite Global Push for Renewables
Coal consumption hit record highs in 2024, with China importing 542.7M metric tons and India ramping up coal-fired power to meet growing energy needs. While U.S. and European coal use declines, demand across Asia remains strong, driven by economic growth, energy security, and industrial production. The rise of AI-driven data centers is further increasing electricity demand, delaying coal’s decline. Despite climate goals, coal remains a key energy source in much of the world—at least for now. [Read]
Chart of the Week
This week, there is no “Chart of the Week” as we don’t see any new opportunities that align with our investment philosophy. Our focus is on delivering the best research, and when there’s nothing worth highlighting, we’re comfortable stepping back.
All our previous picks remain on track, with no significant changes to report. We’ll provide updates if and when conditions shift, maintaining our commitment to high-quality analysis.
Your Questions
Does a stock have to pass all 5 standards or is it enough if it passes one?
You can invest if it passes any standard. For long term investment, you may want to look into underlying reasons. For example, if a company’s debt has been increasing and it may likely become non-compliant, then avoid. But on the other hand, if a company’s debt is decreasing and it is more likely the company will become compliant in other standards as well, go for it. (Answered by Faraz Omar, AAOIFI Certified Shariah Advisor and Auditor)
You may ask your questions in our Community or email them to support@muslimxchange.com
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