Midrash sa Mga Awit 59:9: Midrash Tehillim & Mekhilta DeRabbi Yishmael

“The One who sits in heaven laughs” (Psalms 2:4). Rabbi Yitzhak [rejected a straightforward reading of this verse, with its picture of God engaging in levity, and] said, “All of God’s activities are conducted in [a spirit of] holiness. His speech is [conducted] in holiness, as it is said, “God has spoken in His holiness” (Psalms 60:8). He is praised in [terms of] holiness, as it is said, “holy, holy, holy” (Isaiah 6:3). His [heavenly] procession [moves] in holiness, as it is said, “the processions of my God, my king, [move] in holiness” (Psalms 68:25). His majesty is [saturated] in holiness, as it said, “Who is like unto You, majestic in holiness” (Exodus 15:11).” Alternatively: “The One who sits in heaven laughs” (Psalms 2:4) [shouldn’t be taken to mean that God actually laughs. Rather] the Holy One, blessed be He, [sits up in the heavens, observes, and] says, “these ones [i.e., the enemies of Israel] laugh at those ones [i.e., at Israel]” [This causes Him, in the next verse of Psalms to speak to the nations in anger]. Rabbi Acha said, in the name of Rabbi Shmuel, [that God does indeed laugh. In fact, he notes that] there are four [occasions for heavenly] laughter. (1) “The One who sits in heaven laughs” (Psalms 2:4); (2) “But You, O Lord, shall laugh at them” (Psalms 59:9); (3) “the Lord laughs at him” (Psalms 37:13); (4) “I will also laugh at your calamity” (Proverbs 1:26).

And thus is it written (Psalms 2:1) "Why do the nations rage … (4) The Dweller in the heavens shall laugh", (Ibid. 59:8) "They spout with their mouths … (9) You, O L–rd, will laugh at them."