By Jamie McGeever

ORLANDO, Florida, Feb 5 (Reuters) - "Bouncebackability."

This Britishism is generally associated with cliche-prone soccer supervisors trumpeting their groups' capability to react to beat. It's not likely to discover its method throughout the pond into the Wall Street crowd's lexicon, but it perfectly summarizes the U.S. stock market's durability to all the setbacks, shocks and niaskywalk.com whatever else that's been thrown at it just recently.

And there have actually been a lot: suvenir51.ru U.S. President Donald Trump's tariff flip-flops, stretched appraisals, extreme concentration in Big Tech and the DeepSeek-led chaos that recently cast doubt on America's "exceptionalism" in the global AI arms race.

Any one of those problems still has the prospective to snowball, triggering an avalanche of offering that could press U.S. equities into a correction and even bear-market territory.

But Wall Street has actually become remarkably durable because the 2022 rout, specifically in the last 6 months.

Just look at the artificial intelligence-fueled turmoil on Jan. 27, stimulated by Chinese start-up DeepSeek's revelation that it had actually established a large language design that might attain comparable or much better outcomes than U.S.-developed LLMs at a fraction of the expense. By numerous procedures, securityholes.science the market move was seismic.

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

Drilling deeper, experts at JPMorgan found that the rout in "long momentum" - basically purchasing stocks that have actually been carrying out well recently, such as tech and AI shares - was a near "7 sigma" move, or seven times the basic discrepancy. It was the third-largest fall in 40 years for this trading method.

But this legendary move didn't crash the marketplace. Rotation into other sectors sped up, and around 70% of S&P 500-listed stocks ended the day greater, suggesting the more comprehensive index fell just 1.45%. And of tech stocks soon returned.

U.S. equity funds brought in nearly $24 billion of inflows last week, innovation fund inflows hit a 16-week high, and momentum funds brought 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 Cameron Brandt composed on Monday. "Fund streams ... recommend that numerous 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 unexpected bounce from a 33-year low against the dollar stimulated worries that investors would be required 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 previous monetary crises, wifidb.science 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 vanished quickly. The S&P 500 recovered its losses within 2 weeks, and the Nikkei did similarly within a month.

So Wall Street has passed 2 huge tests in the last 6 months, a period that consisted of the U.S. governmental election and Trump's return to the White House.

What explains the strength? There's no one obvious answer. Investors are broadly bullish about Trump's financial program, the Fed still seems to be in reducing mode (for now), the AI craze and U.S. exceptionalism narratives are still in play, pipewiki.org and liquidity abounds.

Perhaps one key chauffeur is a well-worn one: the Fed put. Investors - much of whom have spent a great piece of their working lives in the age of extraordinarily loose financial policy - may still feel that, if it actually comes down to it, the Fed will have their backs.

There will be more pullbacks, and risks of a more extended decline do seem to be growing. But for lespoetesbizarres.free.fr now, the rebounds keep coming. That's bouncebackability.

(The viewpoints expressed here are those of the author, a columnist for Reuters.)

(By Jamie McGeever; Editing by Rod Nickel)