Wall Street Shows Its 'bouncebackability': McGeever
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By Jamie McGeever

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

This Britishism is typically associated with cliche-prone soccer managers trumpeting their teams’ ability to react to beat. It’s unlikely to find its way across the pond into the Wall Street crowd’s lexicon, larsaluarna.se but it perfectly sums up the U.S. stock exchange’s strength to all the setbacks, shocks and everything else that’s been tossed at it recently.

And 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 chaos that recently called into question America’s “exceptionalism” in the global AI arms race.

Any one of those problems still has the possible to snowball, causing an avalanche of selling that could press U.S. equities into a correction or even bear-market territory.

But Wall Street has become remarkably resilient given that 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 start-up DeepSeek’s revelation that it had actually established a large language design that might attain similar or better results than U.S.-developed LLMs at a fraction of the expense. By lots of procedures, the market move was seismic.

Nvidia shares fell 17%, slicing almost $600 billion off the firm’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 much deeper, experts at JPMorgan found that the rout in “long momentum” - basically buying stocks that have actually been performing well recently, such as tech and AI shares - was a near “7 sigma” relocation, or 7 times the standard deviation. It was the third-largest fall in 40 years for addsub.wiki this trading strategy.

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

U.S. equity funds attracted almost $24 billion of inflows last week, technology fund inflows struck a 16-week high, and momentum funds attracted positive flows for [forum.batman.gainedge.org](https://forum.batman.gainedge.org/index.php?action=profile