By Jamie McGeever

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

This Britishism is usually related to cliche-prone soccer supervisors trumpeting their groups' capability to respond to defeat. It's unlikely to find its way across the pond into the Wall Street crowd's lexicon, but it completely sums up the U.S. stock market's durability to all the problems, shocks and whatever else that's been thrown at it just recently.

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

Any among those problems still has the prospective to snowball, triggering an avalanche of offering that might push U.S. equities into a correction or perhaps bear-market area.

But Wall Street has ended up being remarkably durable considering that the 2022 rout, specifically in the last six months.

Just take a look at the synthetic intelligence-fueled chaos on Jan. 27, spurred by Chinese startup DeepSeek's discovery that it had established a big language design that might attain similar or much better results than U.S.-developed LLMs at a fraction of the expense. By numerous measures, oke.zone the marketplace move was seismic.

Nvidia shares fell 17%, slicing almost $600 billion off the company's market cap, the most significant one-day loss for any company ever. The value of the wider U.S. stock market fell by around $1 trillion.

Drilling much deeper, analysts at JPMorgan discovered that the rout in "long momentum" - essentially stocks that have actually been carrying out well just recently, such as tech and AI shares - was a near "7 sigma" relocation, or thatswhathappened.wiki 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, indicating the more comprehensive index fell only 1.45%. And 35.237.164.2 purchasers of tech stocks quickly returned.

U.S. equity funds drew in almost $24 billion of inflows last week, 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 genbecle.com of research Cameron Brandt composed on Monday. "Fund flows ... 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 sudden bounce from a 33-year low against the dollar triggered worries that investors would be required to offer possessions in other markets and countries to cover losses in their big yen-funded carry trades.

The yen's rally was extreme, on par with previous monetary crises, and the Nikkei's 12% fall on Aug. 5 was the most significant one-day drop because October 1987 and the second-largest on record.

The panic, setiathome.berkeley.edu 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 also within a month.

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

What explains the resilience? There's nobody obvious response. Investors are broadly bullish about Trump's financial agenda, the Fed still appears to be in easing mode (for now), the AI frenzy and U.S. exceptionalism narratives are still in play, and liquidity abounds.

Perhaps one crucial motorist is a well-worn one: the Fed put. Investors - numerous of whom have actually invested a great portion of their working lives in the era of extraordinarily loose financial policy - might still feel that, if it truly comes down to it, the Fed will have their backs.

There will be more pullbacks, and dangers of a more extended recession 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 columnist for Reuters.)

(By Jamie McGeever; Editing by Rod Nickel)