Market focused on what's beyond Fed's December rate decision, says Plexo Capital's Toney

Group 1 - The Federal Reserve's potential rate drop of 25 basis points is already anticipated and priced in, with a focus on the balance sheet maintenance post-quantitative tightening [2][3] - Private companies are increasingly influencing public market dynamics, shifting the perception of software investments from cash flow machines to utility-like entities [4] - Significant infrastructure investment is required for AI development, with Morgan Stanley estimating a need for approximately $3 trillion over the next five years, half of which will need to come from debt markets [6] Group 2 - Companies like Alphabet are issuing substantial debt, such as $25 billion, partly for AI infrastructure, indicating a trend towards leveraging debt for growth in this sector [5] - Concerns exist regarding the potential for an AI bubble, with some arguing that lowering rates could exacerbate borrowing conditions for companies already able to secure favorable terms [7] - Oracle's financial positioning is under scrutiny, as it hovers near junk status while making significant bets on AI infrastructure, with market reactions reflected in rising credit default swap spreads [10]