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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 teams' ability to react to defeat. It's unlikely to discover its way throughout the pond into the Wall Street crowd's lexicon, however it completely summarizes the U.S. stock market's resilience to all the setbacks, shocks and everything else that's been thrown at it just recently.

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

Any one of those concerns still has the prospective to snowball, causing an avalanche of selling that might press U.S. equities into a correction and even bear-market territory.

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

Just take a look at the synthetic intelligence-fueled turmoil on Jan. 27, stimulated by Chinese startup DeepSeek's revelation that it had established a large language model that might attain comparable or better outcomes than U.S.-developed LLMs at a portion of the expense. By numerous measures, the marketplace move was seismic.

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

Drilling deeper, experts at JPMorgan discovered that the rout in "long momentum" - essentially purchasing stocks that have actually been carrying out well just recently, such as tech and AI shares - was a near "7 sigma" move, or 7 times the basic variance. It was the third-largest fall in 40 years for tandme.co.uk this trading strategy.

But this epic relocation didn't crash the marketplace. Rotation into other sectors accelerated, and around 70% of S&P 500-listed stocks ended the day greater, meaning the more comprehensive index fell only 1.45%. And buyers of tech stocks soon returned.

U.S. equity funds drew in almost $24 billion of inflows last week, technology fund inflows struck a 16-week high, annunciogratis.net and momentum funds drew in favorable circulations for a fifth-consecutive week, according to EPFR, the fund flows tracking firm.

"Investors saw the DeepSeek-triggered selloff as an opportunity 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 bring trade volatility of last August? The yen's sudden bounce from a 33-year low against the dollar sparked worries that financiers would be required to offer assets in other markets and countries to cover losses in their big yen-funded bring trades.

The yen's rally was extreme, on par with past financial crises, and smfsimple.com the Nikkei's 12% fall on Aug. 5 was the biggest 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 2 days. But it disappeared quickly. The S&P 500 recovered its losses within two weeks, and the Nikkei did similarly within a month.

So Wall Street has actually passed 2 big tests in the last six months, a duration that included the U.S. governmental election and Trump's go back to the White House.

What explains the durability? There's no one obvious answer. Investors are broadly bullish about Trump's financial program, the Fed still appears to be in relieving mode (in the meantime), the AI craze and U.S. exceptionalism narratives are still in play, setiathome.berkeley.edu and liquidity is numerous.

Perhaps one is a well-worn one: the Fed put. Investors - numerous of whom have actually spent an excellent piece of their working lives in the age of extraordinarily loose financial policy - may still feel that, if it really boils down to it, the Fed will have their backs.

There will be more pullbacks, timeoftheworld.date and dangers of a more prolonged slump do appear to be growing. But for now, wiki.asexuality.org the rebounds keep coming. That's bouncebackability.

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

(By Jamie McGeever; Editing by Rod Nickel)