Key Takeaways
- Amazon's (AMZN) shares surged by over 10% in extended trading after its cloud unit, Amazon Web Services (AWS), reported a robust 20% rise in revenue for the third quarter, significantly beating analyst estimates and marking its strongest growth since 2022. This performance was largely driven by relentless business spending on artificial intelligence (AI) software development.
- The Federal Reserve is poised to end its Quantitative Tightening (QT) program and cut interest rates by a quarter point in October 2025, bringing the federal funds rate to a range of 3.75%-4.0%. This pivot aims to ease liquidity concerns in money markets and support the financial system.
- Japan's housing starts fell by 7.3% year-on-year in September 2025, a milder decline than the estimated 7.8% and an improvement from the previous month's 9.8% drop, indicating a slight easing in the housing market contraction.
- The UK's communications regulator, Ofcom, is intensifying scrutiny on tech giants like X, TikTok, and Reddit, threatening algorithm audits to ensure compliance with the Online Safety Act 2023 and protect children from harmful content.
- A planned summit between U.S. President Donald Trump and Russian President Vladimir Putin in Budapest was canceled due to Russia's "maximalist demands" for ending the Ukraine war and a lack of progress in negotiations.
Amazon.com Inc. (AMZN) experienced a significant boost in its stock value, with shares climbing over 10% in after-hours trading. This surge follows a strong third-quarter earnings report where its cloud computing division, Amazon Web Services (AWS), posted a 20% increase in revenue, reaching $33 billion. This performance surpassed Wall Street expectations of a 17.95% increase and represents AWS's fastest growth rate since 2022, primarily fueled by robust demand for AI infrastructure and core infrastructure. The company also reported overall revenue of $180.2 billion, exceeding estimates of $177.75 billion, and projected fourth-quarter net sales between $206 billion and $213 billion.
In monetary policy news, the Federal Reserve has signaled a significant shift, indicating plans to end its Quantitative Tightening (QT) program and implement another quarter-point interest rate cut in October 2025. This move aims to address mounting liquidity concerns in money markets and ensure the smooth functioning of the financial system. The rate reduction will bring the benchmark federal funds rate to a range of 3.75%-4.0%, its lowest in nearly three years. The decision to halt QT, which involves the Fed ceasing the reduction of its balance sheet by not replacing maturing bonds, is expected to ease liquidity pressures on banks and potentially support stock markets.
Economic data from Japan revealed that housing starts declined by 7.3% year-on-year in September 2025, a less severe contraction than the anticipated 7.8% drop. This marks the sixth consecutive month of decrease but represents the mildest fall in the sequence, suggesting a potential moderation in the housing market slowdown. Annualized housing starts were reported at 728,000, slightly below the estimated 740,000 but above the previous month's 711,000.
Meanwhile, the UK's regulatory landscape for technology companies is tightening. The communications regulator, Ofcom, is threatening algorithm audits for major tech firms like X, TikTok, and Reddit. This initiative is part of the fully implemented Online Safety Act 2023, which mandates that digital platforms protect children from harmful content. Companies failing to comply face substantial penalties, including fines of up to £18 million or 10% of global revenue, and senior managers could face criminal liability for repeated breaches.
On the geopolitical front, a highly anticipated summit between U.S. President Donald Trump and Russian President Vladimir Putin in Budapest has been canceled. The cancellation reportedly stems from Russia's "maximalist demands" for ending the Ukraine war and a lack of substantive progress in preliminary discussions. President Trump stated he did not want a "wasted meeting" if it wouldn't lead to a desired outcome. This development follows a period of intense diplomacy and highlights ongoing challenges in resolving the conflict.
Further international developments include Israel receiving the remains of two more hostages, Amiram Cooper and Sahar Baruch, returned by Hamas on Thursday. This brings the total number of returned deceased hostages to 17 under the ceasefire agreement, though 11 more remain in Gaza. Separately, Iran has strongly condemned President Trump's call to resume U.S. nuclear testing, labeling the move as "regressive and irresponsible" and a "serious threat to international peace and security." This condemnation comes amidst renewed global concerns over nuclear tensions.
Finally, U.S. officials emphasized "very strong and robust" U.S. participation at the APEC summit in South Korea, despite President Trump's decision to skip the main leaders' meeting. Trump attended the APEC CEO Summit and held bilateral talks, underscoring the U.S. commitment to the region, even as his absence from the full summit drew attention.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.