By Jamie McGeever

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

This Britishism is usually related to 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, but it completely summarizes the U.S. stock exchange’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, extreme concentration in Big Tech and the DeepSeek-led turmoil that just recently called into question America’s “exceptionalism” in the worldwide AI arms race.

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

But Wall Street has become incredibly durable considering that the 2022 rout, particularly in the last six months.

Just take a look at the artificial intelligence-fueled chaos on Jan. 27, stimulated 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 cost. By lots of measures, the marketplace relocation 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, analysts at JPMorgan discovered that the rout in “long momentum” - essentially purchasing stocks that have actually been performing well recently, pl.velo.wiki such as tech and AI shares - was a near “7 sigma” move, or seven times the standard variance. It was the third-largest fall in 40 years for this trading technique.

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 higher, implying 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 recently, technology fund inflows struck a 16-week high, asteroidsathome.net and momentum funds brought in favorable flows for a fifth-consecutive week, according to EPFR, galgbtqhistoryproject.org the fund streams tracking company.

“Investors saw the DeepSeek-triggered selloff as a chance instead of an off-ramp,” EPFR director wiki.whenparked.com of research study Cameron Brandt wrote on Monday. “Fund streams … recommend that numerous of those investors kept faith with their previous presumptions 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 triggered fears that investors would be forced to offer possessions in other markets and nations to cover losses in their huge yen-funded bring trades.

The yen’s rally was severe, on par with past financial crises, and the Nikkei’s 12% fall on Aug. 5 was the biggest 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 quickly. The S&P 500 recouped its losses within 2 weeks, and the Nikkei did also within a month.

So Wall Street has passed two big tests in the last 6 months, forum.pinoo.com.tr 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 nobody obvious answer. Investors are broadly bullish about Trump’s economic agenda, the Fed still seems to be in reducing mode (for now), the AI frenzy 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 - many of whom have invested a good chunk of their working lives in the era of extremely loose financial policy - may still feel that, if it truly boils down to it, the Fed will have their backs.

There will be more pullbacks, and threats of a more extended decline do seem to be growing. But for now, the rebounds keep coming. That’s bouncebackability.

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

(By Jamie McGeever