وَمَا مِن دَآبَّةٍۢ فِى ٱلْأَرْضِ إِلَّا عَلَى ٱللَّهِ رِزْقُهَا وَيَعْلَمُ مُسْتَقَرَّهَا وَمُسْتَوْدَعَهَا ۚ كُلٌّۭ فِى كِتَـٰبٍۢ مُّبِينٍۢ
And there is no creature on earth but that upon Allāh is its provision, and He knows its place of dwelling and place of storage. All is in a clear register. (Qur’an, 11:6)
Market Snapshot
▲ S&P 500 +1.47%
▲ SPUS +1.86%
▲ MSCI World Islamic +0.35%
*Market data for last week ending Friday
Last Week’s Review
Federal Reserve Chair Jerome Powell’s Testimony:
Jerome Powell signaled no urgency for rate cuts, citing the need for further inflation progress. He reaffirmed a data-driven approach and noted that balance sheet reduction will continue. Markets reacted cautiously, with investors adjusting rate cut expectations.
Super Micro Computer (SMCI) Earnings Report:
SMCI reported preliminary Q2 revenue of $5.6B–$5.7B, slightly below prior guidance but up 54% YoY. The company lowered its fiscal 2025 revenue forecast due to Nvidia processor delays but expects long-term AI-driven growth. It plans to file delayed reports by February 25 to maintain Nasdaq compliance. Shares rose 8% post-announcement.
This Week’s Outlook
Presidents’ Day Market Closure (February 17):
U.S. stock markets will be closed on Monday, February 17, for Presidents’ Day, while major international markets, including London and Tokyo, will remain open. Lower trading volumes ahead of the holiday may lead to volatility when markets reopen on February 18.
Key Retail Earnings (February 20):
Alibaba and Walmart will report earnings, providing key insights into global retail trends. Analysts expect Alibaba’s results to reflect China’s consumer sentiment amid economic challenges, while Walmart’s performance will highlight U.S. spending patterns. Investors will watch for commentary on e-commerce growth, supply chain pressures, and inflation’s impact on margins. Strong results could signal resilience in consumer demand, while weaker earnings may raise concerns about economic slowdowns.
Curated Reads
China’s DeepSeek AI Challenges U.S. Dominance
At the AI Action Summit in France, tech leaders acknowledged China’s DeepSeek as a rising AI player but downplayed its immediate threat to OpenAI. DeepSeek’s low-cost model sparked debate, with some experts questioning its true expenses and potential reliance on U.S. AI outputs. Despite concerns about China’s AI progress narrowing the gap with the U.S., industry leaders argue OpenAI and other major labs remain well ahead. [Read]
Tariffs’ Impact Less Bearish Than Expected
Despite initial concerns, markets have shown resilience to new tariffs, with stocks in Mexico, China, and Europe outperforming the S&P 500. While some sectors, like European autos and beverages, face headwinds, overall sentiment remains optimistic, suggesting markets have priced in the impact. [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
Are CDR hedged funds Compliant?
Conventional methods of currency hedging are not shariah compliant. Allah knows best. (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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