Top Overnight News Iran is fortifying its defenses, rallying loyalists, and hinting that their forces could conduct land incursions into neighboring countries as it threatens a wider, harsher response against the U.S. and its Gulf allies as it prepares for potential American attacks after the midterms and seeks to deter them. WSJ Saudi Arabia intercepted ballistic missiles launched by Yemen’s Houthis, targeting Riyadh and Khamis Mushait. Donald Trump dismissed concerns that Russia and China might be helping Iran. Oil slipped after three days of gains. BBG A global slide in semiconductor stocks deepened, sending South Korea’s chip-heavy equity benchmark down more than 7% at one point, as concerns about AI overheating and Chinese competition intensified. Investor angst over the AI trade increased after Broadcom Inc.’s chief executive likened market sentiment to a casino and warned that financing the buildout will become a key problem. BBG JPMorgan and Goldman Sachs have taken a rare move to limit exposure on a $5 billion loan sale for AI startup Volta Infrastructure as investors demand higher yields for risky debt tied to the AI boom. BBG JPMorgan 3Q FICC sales & trading revenue $5.37B, est. $6B; sees FY net interest income about $106.2B, est. $105.28B. BBG Nvidia's share of China's market for data-center AI chips fell to 34% in the first half of 2026, as US export controls restricted supplies of its products and domestic rivals led by Huawei gained ground. RTRS Volumes in options tied to individual stocks have recently reached levels seen during the meme-stock mania of 2021, about $700 billion of notional volume a day. WSJ BoJ officials are leaning against a rare back-to-back interest rate increase this month while still eyeing the possibility of another move as soon as December, according to people familiar with the matter. BBG Federal Reserve Governor Christopher Waller said the surge in long-term US Treasury yields is helping to curb demand in interest-rate-sensitive sectors such as housing and automobiles, doing some of the work of tighter monetary policy. BBG Big investors are snapping up US Treasuries, seeking to lock in the highest yields in decades as they bet borrowing costs can only climb so much further before a months-long sell-off abates. Investors have injected almost $14bn into US government bond funds since the start of October, after net inflows in the third quarter reached a record $59.3bn. FT Russia will be able to return diesel exports to levels above those US President Donald Trump has outlined under a deal with Moscow which has been criticised by Ukraine and some US lawmakers, Deputy Prime Minister Alexander Novak said on Monday. RTRS Iran and the US remain divided over the sequencing of a diplomatic agreement: Al-Akhbar. Tehran is demanding an end to the war, removal of the naval blockade and oil sanctions, and release of frozen assets before reopening the Strait of Hormuz and discussing nuclear issues, while Washington is insisting on nuclear concessions first. Newsquawk IMF raised 2026 Global Real GDP growth forecast to 3.1% (prev. 3.0%), citing AI investment tempering energy price shock in key economies, while it maintains 2027 global growth view at 3.4%. Maintained US 2026 growth forecast at 2.3% and raises 2027 forecast to 2.3% (prev. 2.2%), lowered China 2026 GDP forecast to 4.5% (prev. 4.6%) and cut 2027 forecast to 4.0% (prev. 4.1%). Newsquawk Surging bond yields are the top risk to the financial system, the IMF says. BBG US Sept. NFIB small business optimism falls to 97.9, est. 98.2. BBG UK Chancellor Healey is reportedly rejecting calls to equalise capital gains tax and income tax rates: FT Black Sea strikes threaten Bulgarian refinery supply, the Bulgarian premier says; a merchant ship was sunk off Bulgaria’s Black Sea coast. BBG/Newsquawk JPM Market Intel stays Tactically Bullish into earnings but flags meaningful risk of a Quality factor reversal around CPI and the Oct. 28 Fed meeting. JPM(Historical earnings: For 2026Q2 (period ended 2026-06-30), Cloudflare reported basic and diluted EPS of -0.55 and net income of USD -0.193 billion. In the prior-year 2025Q2, basic and diluted EPS were -0.26 and net income was USD -88.900 million. For 2026Q1 (period ended 2026-03-31), basic and diluted EPS were -0.07 and net income was USD -22.927 million, compared with 2025Q1 basic and diluted EPS of -0.11 and net income of USD -38.454 million. Consensus expectations: The next upcoming consensus is for 2026Q3, with an EPS estimate of 0.3453 and revenue estimate of USD 0.745 billion.)