By Jamie McGeever

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

This Britishism is usually connected with cliche-prone soccer supervisors trumpeting their groups’ ability to respond to defeat. It’s not likely to find its way throughout the pond into the Wall Street lexicon, wiki.whenparked.com but it completely sums up the U.S. stock market’s durability to all the setbacks, shocks and whatever else that’s been tossed at it just recently.

And there have been a lot: U.S. President Donald Trump’s tariff flip-flops, extended appraisals, severe concentration in Big Tech and setiathome.berkeley.edu the DeepSeek-led turmoil that recently cast doubt on America’s “exceptionalism” in the worldwide AI arms race.

Any one of those concerns still has the potential to snowball, triggering an avalanche of selling that might press U.S. equities into a correction or perhaps bear-market area.

But Wall Street has actually ended up being remarkably resilient because the 2022 rout, specifically in the last 6 months.

Just take a look at the synthetic intelligence-fueled chaos on Jan. 27, spurred by Chinese startup DeepSeek’s revelation that it had actually developed a large language model that might attain similar or much better results than U.S.-developed LLMs at a fraction of the cost. By lots of steps, the marketplace move was seismic.

Nvidia shares fell 17%, slicing nearly $600 billion off the company’s market cap, the biggest one-day loss for any business ever. The worth 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 purchasing stocks that have been carrying out well recently, morphomics.science such as tech and AI shares - was a near “7 sigma” relocation, or 7 times the basic variance. It was the third-largest fall in 40 years for this trading strategy.

But this impressive 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 purchasers of tech stocks soon returned.

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

“Investors saw the DeepSeek-triggered selloff as a chance rather than an off-ramp,” EPFR director of research study Cameron Brandt composed on Monday. “Fund streams … suggest 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 stimulated fears that investors 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 extreme, on par with past monetary 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 2 days. But it disappeared rapidly. The S&P 500 recovered its losses within two weeks, and memorial-genweb.org the Nikkei did also within a month.

So Wall Street has passed 2 big tests in the last six months, a period that consisted of the U.S. governmental election and Trump’s go back to the White House.

What explains the strength? There’s no one obvious answer. Investors are broadly bullish about Trump’s financial agenda, the Fed still seems to be in alleviating mode (for now), the AI craze and U.S. exceptionalism stories are still in play, [users.atw.hu](http://users.atw.hu/samp-info-forum/index.php?PHPSESSID=f5a5b1c4a7d4a4865023752f21069561&action=profile