By Jamie McGeever

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

This Britishism is generally associated with cliche-prone soccer supervisors trumpeting their teams' ability to respond to beat. It's unlikely to find its method across the pond into the Wall Street crowd's lexicon, however it perfectly sums up the U.S. stock exchange's strength to all the setbacks, shocks and whatever else that's been thrown at it just recently.

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

Any among those issues still has the prospective to snowball, triggering an avalanche of selling that might press U.S. equities into a correction or even bear-market territory.

But Wall Street has actually ended up being incredibly resilient considering that the 2022 thrashing, specifically in the last six months.

Just look at the artificial intelligence-fueled chaos on Jan. 27, stimulated by Chinese startup DeepSeek's revelation that it had developed a large language model that might attain comparable or better outcomes than U.S.-developed LLMs at a fraction of the expense. By lots of measures, the market relocation was seismic.

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

Drilling much deeper, analysts at JPMorgan discovered that the rout in "long momentum" - essentially purchasing stocks that have been performing well recently, such as tech and AI shares - was a near "7 sigma" move, or seven times the basic deviation. It was the third-largest fall in 40 years for this trading method.

But this epic relocation didn't crash the marketplace. Rotation into other sectors accelerated, and around 70% of S&P 500-listed stocks ended the day greater, suggesting the wider index fell only 1.45%. And buyers of tech stocks soon returned.

U.S. equity funds attracted nearly $24 billion of inflows last week, technology fund inflows struck a 16-week high, and momentum funds brought in favorable flows for a fifth-consecutive week, according to EPFR, the fund streams tracking company.

"Investors saw the DeepSeek-triggered selloff as an opportunity rather than an off-ramp," EPFR director of research Cameron Brandt composed on Monday. "Fund flows ... recommend that much of those investors kept faith with their previous assumptions about AI."

PANIC MODE?

Remember "yenmageddon," the yen carry trade volatility of last August? The yen's abrupt bounce from a 33-year low against the dollar sparked fears that investors would be forced to sell properties in other markets and nations to cover losses in their huge 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, 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 likewise within a month.

So Wall Street has actually passed two big tests in the last 6 months, a duration that consisted of the U.S. presidential election and Trump's return to the White House.

What explains the strength? There's nobody obvious response. Investors are broadly bullish about Trump's economic 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: securityholes.science the Fed put. Investors - many of whom have spent a great portion of their working lives in the era of extremely loose monetary policy - might still feel that, if it actually boils down to it, the Fed will have their backs.

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

(The viewpoints revealed here are those of the author, a writer for Reuters.)

(By Jamie McGeever; Editing by Rod Nickel)