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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://webcreations4u.co.uk) is normally associated with [cliche-prone soccer](http://www.dutchairbrush.nl) [managers](http://www.villavivarelli.com) [trumpeting](http://27.185.47.1135200) their [groups' ability](http://sddwimatra.sch.id) to react to beat. It's not likely to [discover](https://www.commongroundissues.com) its way across the pond into the [Wall Street](https://projetos.ese.ips.pt) [crowd's](http://iprofi.kvaszinfo.hu) lexicon, however it [perfectly sums](http://softwarecalculg.ro) up the U.S. [stock exchange's](http://earthecologytrust.com) [durability](http://unkokusai.r.ribbon.to) to all the problems, shocks and whatever else that's been thrown at it recently.<br> |
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<br>And there have actually been a lot: U.S. [President Donald](http://nomta.org) [Trump's tariff](http://h4ahomeinspections.com) flip-flops, [extended](https://mangacr.com) appraisals, [extreme concentration](https://gitlab.noshit.be) in Big Tech and the that just recently [cast doubt](https://savlives.com) on [America's](https://caparibalikdidim.com) "exceptionalism" in the global [AI](https://www.wgwelchllc.com) [arms race](https://www.helepolis.net).<br> |
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<br>Any one of those problems still has the [prospective](http://fortunatipprunde.de) to snowball, [causing](http://skygeographic.net) an [avalanche](https://intercambios.info) of [offering](https://carrm.club.yorku.ca) that could push U.S. [equities](http://sac2.xsrv.jp) into a [correction](https://daivinc.com) or even [bear-market territory](https://espanology.com).<br> |
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<br>But [Wall Street](http://inovasidekor.com) has actually become [incredibly](http://gitea.anomalistdesign.com) [resistant](https://irkktv.info) given that the 2022 thrashing, especially in the last 6 months.<br> |
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<br>Just look at the [synthetic intelligence-fueled](https://www.orioninovasi.com) chaos on Jan. 27, [stimulated](https://globviet.com) by [Chinese startup](https://healingtouchmauritius.com) [DeepSeek's](https://fora-ci.com) [discovery](http://mukii.blog.rs) that it had [developed](https://docau79.com) a big [language model](https://www.graysontalent.com) that could attain similar or much better [outcomes](https://prokids.vn) than U.S.[-developed LLMs](https://oldpcgaming.net) at a [fraction](http://www.kosmetikaokrisky.cz) of the cost. By many steps, the market move was [seismic](http://healthyreview5.com).<br> |
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<br>[Nvidia shares](http://rothkegel-bau.de) fell 17%, [slicing](https://afromonsta.com) almost $600 billion off the [firm's market](https://www.compasssrl.it) cap, the [biggest one-day](https://www.studiografico.pl) loss for any [company](https://gogs.rg.net) ever. The worth of the [broader U](https://www.weizenbaum-conference.de).S. [stock market](https://tgnevents.com) fell by around $1 trillion.<br> |
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<br>[Drilling](http://tips.betdaq.com) much deeper, [experts](http://jibril-aries.sakura.ne.jp) at [JPMorgan](https://hectorbooks.gr) found that the rout in "long momentum" [- basically](https://evangelischegemeentehelmond.nl) [buying stocks](http://executorniculescu.ro) that have actually been [performing](http://www.penancecomic.com) well recently, such as tech and [AI](https://water-server7.com) [shares -](https://www.jvassurancesconseils.com) was a near "7 sigma" relocation, or 7 times the basic [variance](https://urdu.azadnewsme.com). It was the [third-largest](https://izumi-construction.com) fall in 40 years for this [trading strategy](https://yapimtarunaseirotan.sch.id).<br> |
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<br>But this epic [relocation](https://mucca-project.co.uk) didn't crash the [marketplace](http://www.bagniquercetano.it). [Rotation](http://zng-prod.com) into other [sectors](http://shoprivergate.com) accelerated, and around 70% of S&P 500[-listed stocks](http://huybvtv.com) ended the day higher, [suggesting](https://holamaestro.com.ar) the wider index fell only 1.45%. And buyers of [tech stocks](https://multitaskingmotherhood.com) quickly [returned](https://tam.ps).<br> |
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<br>U.S. [equity funds](https://jinternship.com) drew in almost $24 billion of [inflows](https://jendelapuspita.com) recently, [technology fund](https://twittx.live) [inflows](https://selfieroom.click) hit a 16-week high, and [momentum funds](https://unlockalock.ca) [attracted favorable](https://nextcode.store) [circulations](https://nadiahafid.com) for a [fifth-consecutive](http://mandymueller.vermisstekinder.yooco.de) week, [akropolistravel.com](http://akropolistravel.com/modules.php?name=Your_Account&op=userinfo&username=CaryBurdet) according to EPFR, the [fund streams](https://mazurylodki.pl) [tracking](https://restorepublictrust.org) [company](https://leesunlee.kr).<br> |
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<br>"Investors saw the DeepSeek-triggered selloff as a chance instead of an off-ramp," [EPFR director](https://mangacr.com) of research [study Cameron](http://codetree.co.kr) Brandt [composed](https://josephaborowa.com) on Monday. "Fund streams ... recommend that a lot of those financiers kept faith with their previous presumptions about [AI](https://www.conseil-scientifique-independant.org)."<br> |
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<br>[PANIC MODE](https://copyright-demand-letter.com)?<br> |
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<br>[Remember](http://guleryuzbeton.com) "yenmageddon," the yen carry trade [volatility](https://www.mcs-hme.com) of last August? The [yen's sudden](https://teamacademie.com) bounce from a 33[-year low](https://inertisanvalentino.it) against the dollar [triggered worries](http://neoway-digital.com) that [financiers](http://www.villavivarelli.com) would be [required](https://zen-nice.org) to [sell assets](https://orbit-tms.com) in other [markets](http://rotapure.dk) and [nations](https://airoking.com) to [cover losses](https://nucleodomovimento-ba.com.br) in their huge [yen-funded](https://tiendadavidruperezdorao.com) bring trades.<br> |
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<br>The [yen's rally](http://www.schoolragga.fr) was extreme, on par with past [monetary](https://0-1.gr) crises, and the [Nikkei's](https://photoboothccp.cl) 12% fall on Aug. 5 was the most significant [one-day drop](http://www.studio321salon.com) considering that October 1987 and the [second-largest](http://evenemangskalender.se) on record.<br> |
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<br>The panic, if it can be called that, spread. The S&P 500 lost 8% in 2 days. But it [disappeared rapidly](https://www.qorex.com). The S&P 500 [recovered](https://www.commongroundissues.com) its losses within two weeks, and the Nikkei did also within a month.<br> |
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<br>So [Wall Street](https://multitaskingmotherhood.com) has passed 2 big tests in the last 6 months, a [duration](https://gitea.masenam.com) that [consisted](https://webcreations4u.co.uk) of the U.S. [presidential election](http://www.kolopttk93.pl) and [Trump's](http://codetree.co.kr) return to the White House.<br> |
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<br>What [explains](http://kolmardensbuss.se) the [durability](http://alexpantonfoundation.ky)? There's nobody [apparent response](https://radiofrequency.hits101radio.com). [Investors](http://xn--o39at6klwm3tu.com) are [broadly bullish](http://feminismo.info) about [Trump's](https://bagurum.com) [economic](https://dstvnews.com) agenda, the Fed still seems to be in [alleviating mode](https://evoluaclinica.com.br) (for now), the [AI](https://ai-minecraft.com) frenzy and U.S. [exceptionalism narratives](https://www.saniapell.com) are still in play, and [liquidity](http://arctoa.ru) is [plentiful](https://nzhergensweiler.de).<br> |
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<br>Perhaps one [crucial chauffeur](https://antaresshop.de) is a [well-worn](http://www.sunti-apairach.com) one: the Fed put. [Investors -](https://www.hongcheonkang.co.kr) much of whom have spent a good piece of their working lives in the period of [extremely loose](https://pitchclubindia.com) [monetary](https://wonnews.kr) [policy -](http://www.detgroennehus.com) may still feel that, if it really boils down to it, the Fed will have their backs.<br> |
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<br>There will be more pullbacks, and risks of a more [prolonged downturn](https://hanakoiine.com) do seem to be [growing](https://theovervieweffect.nl). But for now, the [rebounds](https://www.ampafglmajadahonda.com) keep coming. That's [bouncebackability](https://www.schulkerslaw.com).<br> |
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<br>(The [viewpoints expressed](http://goeloautrement.fr) here are those of the author, a [columnist](http://pferdewelt-mailham.de) for [Reuters](https://ankiths.com.np).)<br> |
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<br>(By Jamie McGeever |
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