Goldman mid-day wrap Key Focus: SPX grinds back to unchanged and currently holding the 50dma (7707) as the tape broadens out with 355 names in the green (S&P ex AI: SPXXAI +135bps). RTY notably outperforming SPX and seeing its second largest dispersion since July. AI Basket (GSTMTAIP) -270bps and currently -12% over the past 7 sessions while Quality (GSP1QUAL) +55bps and +15% over the last month. Strong defensive tilt to the tape: Discretionary (GSXUCOND) +300bps, Health Care (GSXUHLTH) +225bps, Communications (GSXUCOMS) +200bps, Staples (GSXUSTAP) +190bps, and Financials (GSXUFINA) +135bps all seeing +1.5std moves. Broadening out causing pain under the hood as HF VIP Long/Short Pair (GSTHVIPP) -115bps and -10% since the start of the drawdown on Oct8th. Yesterday, Global AI stocks (GSXGGLAI constituents) collectively saw the second largest net selling in the past year after July (-2.8 Z score), driven by long-and-short sales 3.5 to 1 (GS PB). Our GS sentiment indicator has been negative for 6 straight weeks and last reading was its lowest at -1.3 (as of Friday). Aka overall length is not max long. The AI trade is still long, but now a 6 out 10 in terms of length and much cleaner than it was in Jun/July. Our flows were the busiest they've been all week to start in TMT and have since slowed. We have now net sold -$10.5bn in TMT in the past 6 sessions. (ty Sharkey) Liquidity: Exchange volumes are explosive +45% vs 20d avg, while SPX volumes +37% vs 20d avg. ETFs tracking at 31% of the tape with top of book liquidity $8.3mm on the touch.

All assets are at the key level waiting for CPI. ES had a breakdown of 50d EMA, it needs to reclaim 7620-30 ASAP. RTY is at the key support level, BTC/GC is at the bottom of the bull flag. US10Y is at 5% which is bond bears’ first PT. CL is also at key resistance level. Although I think core CPI will be inline as 0.2%, still no ideas about what the market will reacts. Nervous.

Profits matter this year: unlike last year when non-profitable Russell 2000 stocks outperformed profitable ones (+20% vs. +10%), it’s reversed this year with profitable stocks outperforming non-profitable ones by ~500 bps RTY count: 1949 Profitable: 1122 (57%) Nonprofitable: 782 (40%) ______________________  Source: Bloomberg, as of 9/11/2026. Profitable companies have trailing 12-month earnings per share greater than $0. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly.  Past performance is no guarantee of future results.

Top Overnight News The White House has asked the Pentagon to develop strike options against Iranian targets that could be exercised ahead of the midterms, according to two administration officials. The planning underscores just how much the president wants to reduce gas prices and demonstrate progress in the conflict before the vote. The Atlantic The US military has been ordered to be ready for possible Iran strikes as President Trump weighs the timing, with the Pentagon said to have instructed CENTCOM several days ago to conclude preparations for resuming major combat operations in Iran; any campaign is expected to be a joint US-Israeli one including large bombing of Iranian energy, infrastructure and nuclear targets. Axios Attacks on tankers sailing through the Strait of Hormuz hit their highest last week of any week since the Iran war began, according to maritime security sources tracking incidents, amid a bigger export push by Gulf producers. RTRS The EU is taking a more assertive approach to China as it heads into talks aimed at avoiding a trade war. The meeting comes as the EU prepares to curb Chinese hybrid-car imports. BBG Japan’s 30-year government bond auction drew firm demand as elevated yields attracted investors. The bid-to-cover ratio at Thursday’s sale was 3.88 compared with 3.79 at the previous auction and a 12-month average of 3.56. Japan’s bonds were steady after the sale. The BoJ said price increases driven by higher raw material costs were spreading to consumer goods with some firms hiking prices more often, signaling its concern over broadening inflationary pressure. RTRS France is considering boosting issuance of shorter-term debt, as investors grow more hesitant to lend to the debt-laden country for longer periods. WSJ France Finance Minister Roland Lescure told the BBC that there is still investor demand for government bonds. About 38% of France’s high-grade corporate bonds now trade at lower yields than comparable sovereign debt. BBG Broadcom is said to be in talks to arrange about $30 billion in debt financing to help OpenAI buy custom AI chips the companies are developing together. Tencent is mulling a $5 billion bond sale, people familiar said. BBG The Fed’s Christopher Waller said further rate hikes will probably be needed, though officials have some flexibility on timing. BBG Crescent Energy to buy Devon's Eagle Ford assets for $4.22 billion in cash. BBG Hurricane Isaias is in the US Gulf with 80 mph winds and still strengthening, with Gulf producers shutting in wells and evacuating personnel. BBG Saudi Arabia is in talks to formalize Hormuz shuttle services in a fight for market share. BBG Germany doubled its 2026 growth outlook as manufacturing rallies. BBG NatWest is pulling back from dealing US and European government bonds, exiting as a primary dealer. BBG Goldman's special bonus for top brass is set to exceed $500 million. BBG US President Trump administration moves towards temporary sales of some unapproved peptides: Washington Post. US is set to announce commitments from AI firms to provide more than USD 1bln in computing credits: Washington Post. BofA Total Card Spending (w/e Oct 3rd) +3% Y/Y (prev. +5.6%); lower income spending growth continued to outpace higher income. Newsquawk Net exposure to the Mag7 on Goldman's Prime book is ~22% of total US exposure, the highest on record since the start of 2022; US Tech saw its largest monthly % buying since Feb '25 in September. GS Prime JPM Positioning Intel flags crowding in NDX longs (98th percentile) and RTY shorts (3rd percentile), warning of near-term RTY outperformance risk. JPM