Nearly all major stock groups fell during the week as markets expected the Federal Reserve to ease its measures to curb inflation. Investors quickly moved from "overcrowded" large-cap stocks to small-cap opportunities, according to Bloomberg.

Analysts said that although the market rotation has emerged, it has not yet been confirmed as a long-term investment theme. The recent market expansion is encouraging, but we need to be wary of potential false signals.

Although economic data is mostly in a "Goldilocks" state and technology stocks are still "over-owned", analysts do not recommend an aggressive allocation to cyclical stocks.

The market expects the Federal Reserve to ease monetary policy this fall, but there is still uncertainty about the pace of cooling of inflation and employment in the future.