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By Jamie McGeever

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

This Britishism is usually related to cliche-prone soccer supervisors trumpeting their to react to defeat. It's not likely to find its way throughout the pond into the Wall Street crowd's lexicon, addsub.wiki however it perfectly sums up the U.S. stock exchange's resilience to all the problems, shocks and everything 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, extended appraisals, severe concentration in Big Tech and the DeepSeek-led turmoil that recently cast doubt on America's "exceptionalism" in the global AI arms race.

Any one of those concerns still has the prospective to snowball, causing an avalanche of offering that could push U.S. equities into a correction or links.gtanet.com.br even bear-market area.

But Wall Street has actually become incredibly resilient given that the 2022 rout, especially in the last six months.

Just look at the synthetic intelligence-fueled chaos on Jan. 27, spurred by Chinese startup DeepSeek's revelation that it had actually developed a big language design that might attain comparable or better outcomes than U.S.-developed LLMs at a fraction of the cost. By lots of steps, sciencewiki.science the marketplace relocation was seismic.

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

Drilling deeper, experts at JPMorgan found that the rout in "long momentum" - basically purchasing stocks that have been carrying out well recently, securityholes.science such as tech and AI shares - was a near "7 sigma" move, or 7 times the standard variance. It was the third-largest fall in 40 years for this trading strategy.

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

U.S. equity funds brought in nearly $24 billion of inflows recently, technology fund inflows struck a 16-week high, and momentum funds brought in positive flows for visualchemy.gallery a fifth-consecutive week, according to EPFR, the fund streams tracking firm.

"Investors saw the DeepSeek-triggered selloff as a chance rather than an off-ramp," EPFR director of research Cameron Brandt composed on Monday. "Fund flows ... suggest that a number 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 sudden bounce from a 33-year low against the dollar sparked fears that financiers would be forced to sell possessions in other markets and nations to cover losses in their big yen-funded carry trades.

The yen's rally was severe, on par with past financial crises, and the Nikkei's 12% fall on Aug. 5 was the greatest one-day drop since 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 also within a month.

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

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

Perhaps one essential driver is a well-worn one: the Fed put. Investors - a lot of whom have spent a great piece of their working lives in the era of extremely loose monetary policy - might still feel that, if it truly comes down to it, library.kemu.ac.ke the Fed will have their backs.

There will be more pullbacks, and dangers of a more extended downturn do seem to be growing. But for now, the rebounds keep coming. That's bouncebackability.

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

(By Jamie McGeever; Editing by Rod Nickel)