By Jamie McGeever

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

This Britishism is usually connected with cliche-prone soccer managers trumpeting their teams’ ability to react to defeat. It’s not likely to find its way throughout the pond into the Wall Street crowd’s lexicon, but it perfectly summarizes the U.S. stock exchange’s strength to all the problems, shocks and whatever else that’s been thrown at it recently.

And there have 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 recently cast doubt on America’s “exceptionalism” in the international AI arms race.

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

But Wall Street has actually ended up being incredibly resilient given that the 2022 rout, specifically in the last six months.

Just take a look at the synthetic intelligence-fueled turmoil on Jan. 27, stimulated by Chinese start-up DeepSeek’s revelation that it had actually established a big language model that could attain comparable or much better results than U.S.-developed LLMs at a portion of the expense. By numerous steps, the market relocation was seismic.

Nvidia shares fell 17%, slicing nearly $600 billion off the firm’s market cap, the most significant loss for any company ever. The worth of the larger U.S. stock market fell by around $1 trillion.

Drilling deeper, experts at JPMorgan found 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 seven times the basic deviation. It was the third-largest fall in 40 years for this trading strategy.

But this epic move didn’t crash the market. Rotation into other sectors sped up, and around 70% of S&P 500-listed stocks ended the day greater, meaning the wider index fell only 1.45%. And buyers of tech stocks quickly returned.

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

“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 streams … suggest that a lot of those financiers kept faith with their previous assumptions about AI.”

PANIC MODE?

Remember “yenmageddon,” the yen bring trade volatility of last August? The yen’s abrupt bounce from a 33-year low against the dollar sparked worries that financiers would be required to offer properties in other markets and countries to cover losses in their huge yen-funded bring trades.

The yen’s rally was extreme, on par with previous financial crises, lovewiki.faith and the Nikkei’s 12% fall on Aug. 5 was the most significant one-day drop considering that October 1987 and larsaluarna.se 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 recovered its losses within two weeks, and the Nikkei did similarly within a month.

So Wall Street has actually passed two huge tests in the last 6 months, a duration that consisted of the U.S. governmental election and Trump’s return to the White House.

What explains the resilience? There’s no one apparent response. Investors are broadly bullish about Trump’s financial program, the Fed still seems to be in alleviating mode (in the meantime), the AI craze and U.S. exceptionalism stories are still in play, and liquidity abounds.

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

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

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

(By Jamie McGeever