By Jamie McGeever

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

This Britishism is usually associated with cliche-prone soccer supervisors trumpeting their teams' ability to respond to defeat. It's not likely to discover its way across the pond into the Wall Street crowd's lexicon, but it completely summarizes the U.S. stock exchange's strength to all the obstacles, shocks and everything 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, severe concentration in Big Tech and the DeepSeek-led turmoil that just recently called into question America's "exceptionalism" in the global AI arms race.

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

But Wall Street has ended up being incredibly durable since the 2022 rout, particularly in the last six months.

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

fell 17%, slicing nearly $600 billion off the company's market cap, the greatest one-day 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 buying stocks that have been carrying out well recently, such as tech and AI shares - was a near "7 sigma" relocation, or seven times the standard discrepancy. It was the third-largest fall in 40 years for this trading strategy.

But this legendary relocation didn't crash the marketplace. Rotation into other sectors accelerated, and around 70% of S&P 500-listed stocks ended the day higher, implying the broader index fell only 1.45%. And purchasers of tech stocks soon returned.

U.S. equity funds attracted nearly $24 billion of inflows recently, technology fund inflows hit a 16-week high, and momentum funds attracted positive circulations for a fifth-consecutive week, according to EPFR, the fund streams tracking company.

"Investors saw the DeepSeek-triggered selloff as an opportunity instead of an off-ramp," EPFR director of research study Cameron Brandt wrote on Monday. "Fund flows ... suggest that a number 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 sparked worries that financiers would be forced to sell assets in other markets and countries to cover losses in their big yen-funded carry trades.

The yen's rally was severe, on par with past financial crises, and the Nikkei's 12% fall on Aug. 5 was the most significant one-day drop considering that October 1987 and the second-largest on record.

The panic, if it can be called that, engel-und-waisen.de spread. The S&P 500 lost 8% in 2 days. But it disappeared rapidly. 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, a duration that consisted of the U.S. presidential election and Trump's go back to the White House.

What explains the resilience? There's no one obvious answer. Investors are broadly bullish about Trump's financial agenda, the Fed still seems to be in easing mode (in the meantime), the AI frenzy and U.S. exceptionalism narratives are still in play, and liquidity is plentiful.

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

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

(The viewpoints expressed here are those of the author, a writer for classifieds.ocala-news.com Reuters.)

(By Jamie McGeever