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By Jamie McGeever

ORLANDO, Florida, Feb 5 (Reuters) - "Bouncebackability."

This Britishism is usually connected with cliche-prone soccer supervisors trumpeting their teams' ability to react to defeat. It's unlikely to discover its method throughout the pond into the Wall Street crowd's lexicon, but it perfectly summarizes the U.S. stock market's resilience to all the setbacks, shocks and everything else that's been tossed at it recently.

And there have actually been a lot: accc.rcec.sinica.edu.tw U.S. President Donald Trump's tariff flip-flops, stretched appraisals, extreme concentration in Big Tech and the DeepSeek-led turmoil that just recently cast doubt on America's "exceptionalism" in the international AI arms race.

Any among those concerns still has the prospective to snowball, causing an avalanche of offering that could press U.S. equities into a correction and even bear-market area.

But Wall Street has ended up being remarkably resilient considering that the 2022 thrashing, particularly in the last six months.

Just take a look at the synthetic intelligence-fueled chaos on Jan. 27, stimulated by Chinese start-up DeepSeek's discovery that it had established a big language design that might attain similar or much better outcomes than U.S.-developed LLMs at a fraction of the expense. By numerous measures, the marketplace move was seismic.

Nvidia shares fell 17%, slicing nearly $600 billion off the company's market cap, the greatest one-day loss for funsilo.date any business ever. The value of the larger U.S. stock exchange fell by around $1 trillion.

Drilling deeper, experts at JPMorgan discovered that the rout in "long momentum" - basically purchasing stocks that have actually been performing well just recently, such as tech and AI shares - was a near "7 sigma" relocation, or 7 times the standard variance. It was the third-largest fall in 40 years for this trading technique.

But this epic move didn't crash the marketplace. Rotation into other sectors sped up, and championsleage.review around 70% of S&P 500-listed stocks ended the day greater, meaning the broader index fell just 1.45%. And purchasers of tech stocks soon returned.

U.S. equity funds brought in almost $24 billion of inflows last week, innovation fund inflows hit a 16-week high, and momentum funds drew in positive circulations for a fifth-consecutive week, according to EPFR, the fund flows tracking company.

"Investors saw the DeepSeek-triggered selloff as a chance rather than an off-ramp," EPFR director of research Cameron Brandt wrote on Monday. "Fund flows ... suggest that a lot of those investors kept faith with their previous assumptions about AI."

PANIC MODE?

Remember "yenmageddon," the yen bring trade volatility of last August? The yen's sudden bounce from a 33-year low against the dollar stimulated fears that financiers would be required to offer assets in other markets and nations to cover losses in their big yen-funded carry trades.

The yen's rally was extreme, on par with previous financial crises, and the Nikkei's 12% fall on Aug. 5 was the greatest one-day drop because October 1987 and the second-largest on record.

The panic, if it can be called that, spread. The S&P 500 lost 8% in two days. But it vanished quickly. The S&P 500 recouped its losses within 2 weeks, and the Nikkei did similarly within a month.

So Wall Street has passed 2 huge tests in the last 6 months, oke.zone a period that consisted of the U.S. presidential election and Trump's go back to the White House.

What explains the resilience? There's no one obvious response. Investors are broadly bullish about Trump's financial program, the Fed still seems to be in easing mode (in the meantime), the AI craze and U.S. exceptionalism narratives are still in play, and liquidity abounds.

Perhaps one essential chauffeur is a well-worn one: the Fed put. Investors - a number of whom have actually spent a great chunk of their working lives in the era of extremely loose monetary policy - may still feel that, if it actually boils down to it, the Fed will have their backs.

There will be more pullbacks, and dangers of a more prolonged recession do seem to be growing. But for forum.batman.gainedge.org now, the rebounds keep coming. That's bouncebackability.

(The viewpoints revealed here are those of the author, a writer for Reuters.)

(By Jamie McGeever; Editing by Rod Nickel)

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