Global Markets React to Tech Surge, Fed Policy Shift, and Geopolitical Tensions

Company Performance - Amazon.com Inc. (AMZN) saw its stock value increase by over 10% in after-hours trading following a strong third-quarter earnings report [2] - Amazon Web Services (AWS) reported a 20% increase in revenue, reaching $33 billion, surpassing Wall Street expectations of a 17.95% increase and marking its fastest growth rate since 2022 [2] - Overall revenue for Amazon was reported at $180.2 billion, exceeding estimates of $177.75 billion, with projected fourth-quarter net sales between $206 billion and $213 billion [2] Economic Policy - The Federal Reserve plans to end its Quantitative Tightening (QT) program and implement a quarter-point interest rate cut in October 2025, bringing the federal funds rate to a range of 3.75%-4.0% [3][7] - This shift aims to address liquidity concerns in money markets and support the financial system [3] Housing Market - Japan's housing starts declined by 7.3% year-on-year in September 2025, a less severe contraction than the anticipated 7.8% drop, indicating a potential moderation in the housing market slowdown [4][7] - Annualized housing starts were reported at 728,000, slightly below the estimated 740,000 but above the previous month's 711,000 [4] Regulatory Environment - The UK's communications regulator, Ofcom, is intensifying scrutiny on major tech firms like X, TikTok, and Reddit, threatening algorithm audits to ensure compliance with the Online Safety Act 2023 [5][7] - Companies failing to comply could face fines of up to £18 million or 10% of global revenue, with senior managers facing potential criminal liability for repeated breaches [5]