The Federal Reserve's recent rate cuts are prompting a significant shift in market dynamics, as investors move capital away from AI-driven megacap stocks towards cyclicals and emerging markets. This rotation is driven by restored liquidity, encouraging investment in under-owned assets such as industrials, materials, and emerging market equities. ETF strategists highlight that the policy easing could diminish the dominance of long-duration growth stocks, while potentially pressuring the US dollar. This environment may benefit emerging market currencies and commodities, assuming global risk appetite remains stable.