Evercore ISI flags Exxon Mobil, Mondelez as market hedge stocks

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Evercore flags hedge stocks

Highlights

Evercore ISI highlights Exxon Mobil (beta -0.93) and Mondelez International (beta -0.09) as negative beta stocks providing downside market hedges.
Exxon Mobil shares are up nearly 15% year to date, driven by earlier oil price spikes after the Iran war outbreak on Feb. 28, despite Brent crude settling at $77.90.
Mondelez benefits from an almost 11% share gain in 2026, aided by a shift toward budget-conscious households and a drop in cocoa prices.

Negative beta picks gain appeal

As reported by CNBC, Evercore ISI has highlighted a group of negative beta stocks as investors look for ways to cushion portfolios against a potential downturn tied to weakness in AI-linked equities. A negative beta means a stock tends to move inversely to the broader market, making such names potential hedges when major indexes come under pressure.

The shift comes as a global chip selloff intensifies on Tuesday and weighs on some of the market's recent outperformers. Micron drops nearly 11%, Sandisk tumbles 13%, Intel falls 4% and Qualcomm declines 9%, while Applied Materials is down 8%. Nasdaq is last down 1.5% and the S&P 500 sheds almost 1%, even as more defensive shares such as Walmart and Procter & Gamble attract buyers and help lift the Dow Jones Industrial Average 0.2% in midday trading.

Investors are also tracking developments in the Middle East and awaiting inflation data later this week, both of which could shape the outlook for interest rates and risk assets. Against that backdrop, Evercore ISI's list is drawing attention as a defensive strategy beyond the crowded AI trade.

Consumer and energy names offer downside cover

Mondelez International is among the stocks Evercore ISI favors, with a beta of minus 0.09. The snack maker has adjusted its strategy toward households with tighter budgets after U.S. consumer sentiment falls to new lows earlier this year, and the company also benefits from a sharp decline in cocoa prices. Its shares are up nearly 11% in 2026.

Exxon Mobil ranks at the top of Evercore ISI's list with a beta of minus 0.93, giving the energy producer one of the strongest inverse relationships to the broader market among the names cited. Exxon shares gain nearly 15% year to date, supported in part by earlier oil price spikes linked to the outbreak of the Iran war on Feb. 28. Brent crude, which traded above $120 a barrel at the height of the conflict in late April, settles at $77.90 on Monday as tensions ease, but Exxon is still presented as a disciplined producer able to manage commodity price swings.

Our earlier coverage of the S&P 500’s pullback after a global chip rout explained how heavy selling in technology and semiconductor names pushed the index below its 20-day moving average, signaling near-term downside pressure. We also noted that attention was shifting to Micron’s upcoming earnings and key inflation data as potential catalysts, with traders watching major support/resistance levels to gauge whether the broader uptrend could hold.

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