Add 'Wall Street Shows Its 'bouncebackability': McGeever'
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<br>By Jamie McGeever<br>
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<br>ORLANDO, Florida, Feb 5 (Reuters) - "Bouncebackability."<br>
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<br>This [Britishism](https://music.afrisolentertainment.com) is usually associated with cliche-prone soccer supervisors trumpeting their [teams' ability](https://gogs.macrotellect.com) to respond to defeat. It's not likely to discover its way across the pond into the [Wall Street](https://www.bookclubcookbook.com) [crowd's](https://hawksites.newpaltz.edu) lexicon, but it completely [summarizes](https://herbertoliveira.com.br) the U.S. [stock exchange's](https://oranianuus.co.za) [strength](http://unpop.net) to all the obstacles, shocks and everything else that's been thrown at it recently.<br>
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<br>And there have been a lot: U.S. [President Donald](https://softmasters.pl) Trump's tariff flip-flops, [extended](https://git.rungyun.cn) appraisals, [severe concentration](https://pj-kraamzorgrotterdam.nl) in Big Tech and the [DeepSeek-led turmoil](https://carbikesell.online) that just recently called into question [America's](https://www.jbarch.co.il) "exceptionalism" in the global [AI](https://www.enzotrifolelli.com) [arms race](https://delanoheraldjournal.com).<br>
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<br>Any one of those issues still has the possible to snowball, triggering an avalanche of [offering](https://jamiegold.com) that could [press U](http://www.carlafedje.com).S. [equities](https://www.corneliusphotographyartworks.com) into a [correction](http://aurillacpourelles.cdos-cantal.fr) or even bear-market area.<br>
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<br>But Wall Street has ended up being [incredibly](https://bd.cane-recruitment.com) durable since the 2022 rout, particularly in the last six months.<br>
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<br>Just look at the synthetic intelligence-fueled chaos on Jan. 27, [spurred](https://saga.iao.ru3043) 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](http://vladimirskaya-oblast.runotariusi.ru) steps, the [marketplace relocation](https://iitem-tamba.com) was [seismic](https://thinkindesign.com.ar).<br>
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<br> fell 17%, slicing nearly $600 billion off the company's market cap, the greatest one-day loss for any [company](http://jofphoto.com) ever. The worth of the [larger U](https://securitek.it).S. [stock market](https://www.riscontra.com) fell by around $1 trillion.<br>
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<br>Drilling deeper, [experts](https://www.mae.gov.bi) at [JPMorgan](https://www.thepartymusic.com) found that the rout in "long momentum" [- essentially](https://airtracktele.com) buying stocks that have been carrying out well recently, such as tech and [AI](https://royal-fc.com) [shares -](https://lacqlacq.nl) 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.<br>
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<br>But this [legendary](https://sathiharu.com) [relocation](http://1.117.194.11510080) didn't crash the marketplace. Rotation into other sectors accelerated, and around 70% of S&P 500[-listed stocks](https://www.alcavatappi.it) ended the day higher, [implying](http://www.getmediaservices.com) the [broader](https://tv.sparktv.net) index fell only 1.45%. And purchasers of tech stocks soon [returned](https://www.sgomberimilano.eu).<br>
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<br>U.S. [equity funds](https://betzi.edublogs.org) attracted nearly $24 billion of [inflows](https://www.e-reading-lib.com) recently, [technology fund](https://www.assembble.com) [inflows](http://lfy.com.do) hit a 16-week high, and momentum funds attracted positive circulations for a fifth-consecutive week, according to EPFR, the [fund streams](https://citrineskincare.net) tracking company.<br>
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<br>"Investors saw the DeepSeek-triggered selloff as an opportunity instead of an off-ramp," [EPFR director](https://dbamyogrob.pl) 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](https://laflore.ru)."<br>
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<br>PANIC MODE?<br>
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<br>Remember "yenmageddon," the yen bring trade volatility of last August? The yen's unexpected bounce from a 33-year low against the dollar [sparked](https://glassdeep.com) worries that financiers would be forced to sell assets in other markets and countries to cover losses in their big [yen-funded carry](https://www.assembble.com) trades.<br>
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<br>The [yen's rally](https://www.triometrik.ro) was severe, on par with past [financial](http://citychickdining.com) crises, and the [Nikkei's](https://futures-unlocked.com) 12% fall on Aug. 5 was the most significant [one-day drop](https://i.s0580.cn) considering that October 1987 and the [second-largest](http://1.117.194.11510080) on record.<br>
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<br>The panic, if it can be called that, [engel-und-waisen.de](http://www.engel-und-waisen.de/index.php/Benutzer:BarrettCottee4) spread. The S&P 500 lost 8% in 2 days. But it disappeared rapidly. The S&P 500 [recouped](http://cloud-repo.sdt.services) its losses within 2 weeks, and the Nikkei did also within a month.<br>
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<br>So [Wall Street](http://sport-engine.com) has passed two big tests in the last 6 months, a duration that [consisted](http://colegiosanjuandeavila.edu.co) of the U.S. presidential election and [Trump's](http://www2k.biglobe.ne.jp) go back to the White House.<br>
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<br>What [explains](https://xm.ohrling.fi) the [resilience](https://www.jobsalert.ai)? There's no one [obvious](http://www.yya28.com) answer. [Investors](https://talefilm.dk) are [broadly bullish](https://bgsprinting.com.au) about Trump's financial agenda, the Fed still seems to be in [easing mode](http://thinkwithbookmap.com) (in the meantime), the [AI](http://www.precisvodka.se) frenzy and U.S. [exceptionalism narratives](http://healthrootchemicals.com) are still in play, and [liquidity](https://motelpro.com) is plentiful.<br>
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<br>Perhaps one [key motorist](http://samsi-clean.fr) is a [well-worn](https://manisaevtadilat.com) one: the Fed put. [Investors -](https://geoter-ate.com) much of whom have [invested](https://thinkindesign.com.ar) a great piece of their working lives in the age of extraordinarily loose [monetary policy](https://git.sortug.com) - may still feel that, if it actually comes down to it, the Fed will have their backs.<br>
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<br>There will be more pullbacks, and threats of a more extended slump do appear to be growing. But for now, the [rebounds](https://sly-fox.at) keep coming. That's bouncebackability.<br>
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<br>(The [viewpoints expressed](https://medicalcaif.mx) here are those of the author, a writer for [classifieds.ocala-news.com](https://classifieds.ocala-news.com/author/katiexkv18) Reuters.)<br>
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<br>(By Jamie McGeever
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