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By Jamie McGeever

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

This Britishism is typically connected with cliche-prone soccer managers trumpeting their groups' ability to react to beat. It's unlikely to find its method across the pond into the Wall Street crowd's lexicon, however it completely sums up the U.S. stock exchange's resilience to all the problems, shocks and whatever else that's been thrown at it recently.

And there have actually been a lot: U.S. President Donald Trump's tariff flip-flops, stretched appraisals, severe concentration in Big Tech and the DeepSeek-led chaos that just recently called into question America's "exceptionalism" in the international AI arms race.

Any among those concerns still has the possible to snowball, triggering an avalanche of offering that might push U.S. equities into a correction or even bear-market area.

But Wall Street has actually ended up being remarkably resistant considering that the 2022 thrashing, specifically in the last six months.

Just look at the artificial intelligence-fueled turmoil on Jan. 27, spurred by Chinese startup DeepSeek's revelation that it had actually established a large language model that might attain similar or much better outcomes than U.S.-developed LLMs at a portion of the expense. By lots of steps, the market move was seismic.

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

Drilling deeper, analysts at JPMorgan discovered that the rout in "long momentum" - basically buying stocks that have actually been carrying out well just recently, such as tech and AI shares - was a near "7 sigma" move, or kenpoguy.com 7 times the basic deviation. It was the third-largest fall in 40 years for kigalilife.co.rw this trading strategy.

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

U.S. equity funds brought in nearly $24 billion of inflows last week, innovation fund struck a 16-week high, and momentum funds brought in favorable flows for a fifth-consecutive week, according to EPFR, the fund streams tracking company.

"Investors saw the DeepSeek-triggered selloff as a chance instead of an off-ramp," EPFR director of research study Cameron Brandt composed on Monday. "Fund flows ... recommend that a number of those financiers kept faith with their previous presumptions about AI."

PANIC MODE?

Remember "yenmageddon," the yen carry trade volatility of last August? The yen's abrupt bounce from a 33-year low against the dollar triggered worries that financiers would be forced to offer properties in other markets and countries to cover losses in their huge yen-funded bring trades.

The yen's rally was severe, wiki-tb-service.com on par with previous monetary crises, and the Nikkei's 12% fall on Aug. 5 was the biggest one-day drop considering that 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 two weeks, and the Nikkei did similarly within a month.

So Wall Street has actually passed two huge tests in the last 6 months, a duration that included the U.S. governmental election and Trump's return to the White House.

What explains the durability? There's nobody obvious answer. Investors are broadly bullish about Trump's economic agenda, fakenews.win the Fed still seems to be in reducing mode (in the meantime), the AI craze and U.S. exceptionalism narratives are still in play, and liquidity is plentiful.

Perhaps one essential chauffeur is a well-worn one: the Fed put. Investors - much of whom have spent a good portion of their working lives in the age of extremely loose financial policy - may still feel that, if it really comes down to it, the Fed will have their backs.

There will be more pullbacks, and dangers of a more extended downturn do appear to be growing. But for 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)