On Monday, the indices continue to decline after the stock market has been strong. One of the stocks that has contributed to the rise, especially in the technology sector, is Nvidia. CNBC reports on Monday that there are several stocks in the S&P 500 that are negatively correlated with Nvidia. Thus, they tend to rise when Nvidia falls.
Among the stocks on the list are shares such as Xcel Energy, Coca-Cola, and Keurig Dr Pepper. But also health stocks like Solventum, Cencora, Becton, Dickinson and Co, and AbbVie. Defense companies like Lockheed Martin and Northrop also tend to move in the opposite direction of Nvidia.
CNBC notes that S&P 500 stocks that are negatively correlated with Nvidia have risen 9 percent in the last month, while Nvidia is down about 12 percent.
A combination of weaker results from technology companies and impending interest rate cuts has weakened the optimistic sentiment in the technology sector. Investors have instead moved their money into smaller companies, which caused the Russell 2000 to rise nearly 11 percent in July. In comparison, the S&P rose only 1.1 percent, and the Nasdaq ended the month up just 0.8 percent.
Below are the stocks listed by CNBC. A correlation of minus 1 indicates that the stock is perfectly negatively correlated with Nvidia. Thus, if Nvidia falls by 1 percent, the other stock rises by 1 percent and vice versa. A correlation of zero indicates that there is no statistical link between Nvidia’s stock price and the other company.
Stocks that are negatively correlated with Nvidia
CNBC