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By Jamie McGeever

ORLANDO, wiki.vst.hs-furtwangen.de Florida, Feb 5 (Reuters) - "Bouncebackability."

This Britishism is normally connected with cliche-prone soccer supervisors trumpeting their teams' ability to react to beat. It's unlikely to discover its way across the pond into the Wall Street crowd's lexicon, however it perfectly summarizes the U.S. stock market's strength 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, extreme concentration in Big Tech and trademarketclassifieds.com the DeepSeek-led chaos that recently cast doubt on America's "exceptionalism" in the worldwide AI arms race.

Any among those issues still has the prospective to snowball, triggering an avalanche of selling that might push U.S. equities into a correction or perhaps bear-market area.

But Wall Street has actually ended up being extremely resilient because the 2022 thrashing, particularly in the last 6 months.

Just take a look at the artificial intelligence-fueled chaos on Jan. 27, spurred by Chinese start-up DeepSeek's discovery that it had developed a big language model that could attain similar or much better results than U.S.-developed LLMs at a fraction of the cost. By numerous steps, the market relocation was seismic.

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

Drilling deeper, experts at JPMorgan found that the thrashing in "long momentum" - essentially purchasing stocks that have actually been carrying out well recently, such as tech and AI shares - was a near "7 sigma" relocation, or seven times the basic discrepancy. It was the third-largest fall in 40 years for this trading method.

But this impressive 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, meaning the broader index fell just 1.45%. And wiki.dulovic.tech buyers of tech stocks quickly 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 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," of research study Cameron Brandt wrote on Monday. "Fund flows ... suggest that much of those investors 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 sparked worries that investors would be required to offer assets in other markets and countries to cover losses in their big yen-funded carry trades.

The yen's rally was extreme, on par with past monetary crises, and the Nikkei's 12% fall on Aug. 5 was the most significant 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 2 days. But it disappeared rapidly. The S&P 500 recovered its losses within 2 weeks, and the Nikkei did also within a month.

So Wall Street has passed 2 huge tests in the last 6 months, higgledy-piggledy.xyz a period that consisted of the U.S. presidential election and Trump's return to the White House.

What explains the strength? There's no one obvious response. Investors are broadly bullish about Trump's financial program, the Fed still seems to be in relieving mode (in the meantime), thatswhathappened.wiki the AI craze and library.kemu.ac.ke U.S. exceptionalism narratives are still in play, library.kemu.ac.ke and liquidity is numerous.

Perhaps one key motorist is a well-worn one: the Fed put. Investors - a number of whom have spent a good piece of their working lives in the age of extremely loose financial policy - might 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 prolonged decline do appear to be growing. But for now, the rebounds keep coming. That's bouncebackability.

(The opinions revealed here are those of the author, a columnist for Reuters.)

(By Jamie McGeever; Editing by Rod Nickel)