إِنَّ ٱللَّهَ يَأْمُرُكُمْ أَن تُؤَدُّوا۟ ٱلْأَمَـٰنَـٰتِ إِلَىٰٓ أَهْلِهَا وَإِذَا حَكَمْتُم بَيْنَ ٱلنَّاسِ أَن تَحْكُمُوا۟ بِٱلْعَدْلِ ۚ
Indeed, Allāh commands you to render trusts to whom they are due and when you judge between people to judge with justice.. (Qur’an, 4:58)
Market Snapshot
▲ S&P 500 +0.79%
▲ SPUS +1.95%
▲ MSCI World Islamic +1.16%
*Market data for last week ending Friday
Last Week’s Review
US Unemployment Rate and Nonfarm Payrolls: November’s labor market report showed a net gain of 227,000 jobs, slightly exceeding expectations, while the unemployment rate rose to 4.2%. The increase in unemployment, alongside steady wage growth of 4% year-over-year, indicates a robust but moderating labor market.
Retail Earnings (ULTA, LULU, DG): Ulta Beauty and Lululemon Athletica both surpassed EPS estimates by 15.5% and 4.4% respectively. Both companies also increased full-year revenue forecasts, signalling increasing customer demand in discretionary purchases. Dollar General missed EPS estimates by 5.3%, continuing the downward trend in budget-conscious retailers.
This Week’s Outlook
European Central Bank Interest Rate Decision (December 12): The ECB is expected to cut its deposit rate by 25 basis points to 3%, aiming to support the Eurozone’s slowing economy. The market is pricing further reductions in 2025, potentially bringing the rate down to 1.75% by year’s end.
Federal Reserve Interest Rate Decision (December 18): The Fed is projected to lower the federal funds rate by 25 basis points to a target range of 4.25%-4.50%, responding to moderating inflation and economic growth indicators. This move would mark the fourth rate cut in 2024.
Broadcom (AVGO) Earnings (December 12): Broadcom is scheduled to announce its fourth-quarter earnings, with analysts estimating an EPS of $1.39, indicating a 25.23% year-over-year increase. Revenue is expected to reach $14.07 billion. As a significant player in the semiconductor industry, Broadcom’s performance will offer insights into the sector’s health and potential slowdowns.
Curated Reads
China Tightens Grip on Critical Minerals
Beijing’s latest export restrictions on minerals like gallium, germanium, and antimony underscore China’s dominance in critical supply chains. These materials are crucial for semiconductors, weapons, and EV batteries, with 85% of global mineral processing controlled by China. As tensions with the U.S. escalate, the potential for broader restrictions could disrupt American military and industrial operations, exposing vulnerabilities in mineral supply chains long neglected by Washington. [Read]
Marvell: The Small AI Chip Maker Worth More Than Intel
Marvell Technology’s market cap surged past $100 billion following a strong earnings report and an expanded deal with Amazon. Its data center sales nearly doubled, now comprising 72% of revenue. Analysts project Marvell’s AI chip business could capture up to one-third of the $30-$50 billion custom chip market by 2030. Despite growth, any slowdown in AI investments could challenge its lofty valuation. [Read]
Chart of the Week
Investing in the US stock market vs rest of the world
This week’s chart highlights the staggering outperformance of the US stock market compared to the rest of the world. Over decades, the compounding effect is even more apparent: US stocks consistently dominate as engines of long-term wealth creation.
The takeaway is clear: no matter where you are, understanding and participating in the US market is essential. You could spend countless hours researching promising opportunities in other regions—and even make the right calls—but those investments often lack the tailwind that US stocks reliably enjoy. For better or worse, US stocks tend to “only go up” over time.
On top of this, the US stock market also offers unmatched access to high-quality, transparent information. From detailed financial disclosures to comprehensive analyst coverage, it’s easier, more affordable, and far more reliable to gather the data needed to make informed investment decisions. Investors everywhere, especially those outside the US, should take the time to explore and familiarize themselves with the US stock market—it’s an opportunity too significant to overlook.
Disclaimer: This information is accurate as of the date of publishing and is not intended as investment advice.
Your Questions
How to pay Zakat on a stock when it also has an impure portion?
Zakat and purification are separate from each other. If a stock is Compliant but has impure income less than 5%, then purification is due every financial period (e.g. quarterly), according to AAOIFI. Zakat is due after a year has passed. Both these numbers are automatically calculated when you set up your portfolio on Muslim Xchange. If the intention is short-term trading, then Zakat is 2.5% of the entire value if you have held it for a year. (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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