By Jamie McGeever

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

This Britishism is usually related to cliche-prone soccer supervisors trumpeting their teams’ capability to react to beat. It’s unlikely to find its way across the pond into the Wall Street crowd’s lexicon, utahsyardsale.com but it perfectly sums up the U.S. stock exchange’s durability to all the setbacks, shocks and whatever else that’s been tossed at it just 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 turmoil that recently cast doubt on 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 could push U.S. equities into a correction and even bear-market area.

But Wall Street has become remarkably durable considering that the 2022 thrashing, particularly in the last six months.

Just look at the synthetic intelligence-fueled turmoil on Jan. 27, spurred by Chinese start-up DeepSeek’s revelation that it had developed a large language design that could attain comparable or asteroidsathome.net better outcomes than U.S.-developed LLMs at a portion of the cost. By numerous steps, the market move was seismic.

Nvidia shares fell 17%, slicing nearly $600 billion off the company’s market cap, the greatest one-day loss for bybio.co any business ever. The worth of the broader U.S. stock market fell by around $1 trillion.

Drilling much deeper, analysts at JPMorgan discovered that the rout in “long momentum” - essentially buying stocks that have been performing well just recently, such as tech and AI shares - was a near “7 sigma” relocation, or seven times the basic variance. It was the third-largest fall in 40 years for this trading method.

But this epic move didn’t crash the market. Rotation into other sectors accelerated, and around 70% of S&P 500-listed stocks ended the day higher, suggesting the broader index fell only 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 brought in positive circulations for wiki.vst.hs-furtwangen.de a fifth-consecutive week, according to EPFR, the fund flows tracking firm.

"Investors saw the DeepSeek-triggered selloff as a chance instead of an off-ramp,” EPFR director of research study Cameron Brandt wrote on Monday. “Fund streams ... suggest that much of those financiers kept faith with their previous assumptions about AI.“

PANIC MODE?

Remember “yenmageddon,” the yen carry trade volatility of last August? The yen’s unexpected bounce from a 33-year low against the dollar triggered fears that financiers would be forced to offer assets in other markets and countries to cover losses in their huge yen-funded carry 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 disappeared quickly. The S&P 500 recovered its losses within two weeks, ai-db.science and the Nikkei did also within a month.

So Wall Street has actually passed two huge tests in the last six months, a period that consisted of the U.S. presidential election and Trump’s go back to the White House.

What explains the durability? There’s nobody obvious response. Investors are broadly bullish about Trump’s financial program, the Fed still appears to be in relieving mode (for now), the AI craze and U.S. exceptionalism narratives are still in play, and abounds.

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

There will be more pullbacks, and threats of a more extended slump do seem to be growing. But for now, wolvesbaneuo.com the rebounds keep coming. That’s bouncebackability.

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

(By Jamie McGeever