As economic and geopolitical uncertainty increases, so do fears that the so-called artificial intelligence bubble could burst, prompting investors to look for stocks that trade in the opposite direction of the broader market. Enter “negative beta” stocks. Beta is a statistical number that measures a stock’s volatility relative to the S&P 500 or other broad market index. Stocks with a negative beta value move in an inverse relationship to the overall market. Evercore ISI has compiled a list of negative beta names including Mondelez International and Exxon Mobil. These can be a good hedge against market downturns. Will a bear market come first? The S&P 500 is up about 8% since the beginning of the year, but the global chip stock selloff intensified on Tuesday, weighing on strong performers like Micron and Applied Materials, making “negative beta” stocks look more attractive. On Tuesday, Micron fell nearly 11%, SanDisk fell 13%, Intel fell 4% and Qualcomm plunged 9%. Applied Materials fell 8%. The Nasdaq was last down 1.5% and the S&P 500 was down almost 1% as the tech industry came under pressure. But investors were buying more defensive stocks like Walmart and Procter & Gamble. As a result, the Dow Jones Industrial Average, which started the day in the red, rose 0.2% in midday trading. In addition to gauging the health of AI trade, investors are closely monitoring developments in the Middle East and are also keeping an eye on inflation data later this week, which could determine the direction of interest rates. Amid the pullback, here are some negative beta stocks to consider, favored by Evercore ISI. Mondelez International Evercore ISI says the snack name has a beta of -0.09 and could act as a hedge against potential share price weakness. The company, owner of well-known snack brands such as Oreo and Cadbury, is refocusing its strategy on serving households on a tight budget after U.S. consumer sentiment fell to a new low earlier this year, a decision that has boosted its stock price. Separately, chocolate retailers are also benefiting from the sharp drop in cocoa prices. Mondelez International’s stock price rose nearly 11% in 2026, according to Evercore ISI. ExxonMobil The energy company’s name offers another attractive option to avoid a broader market correction, the company said. The stock has a beta value of -.93, which puts it at the top of Evercore ISI’s list. Exxon Mobil stock has risen by double digits since the beginning of the year, driven in large part by soaring oil prices related to the outbreak of war with Iran on February 28th. Brent crude oil futures, the international benchmark for oil prices, were trading at more than $120 a barrel in late April, at the height of the conflict. But the easing of tensions caused prices to fall, with Brent crude oil settling at $77.90 per barrel on Monday. But Exxon is a disciplined producer that can weather this volatility. Exxon stock has risen nearly 15% since the beginning of the year.
