According to analysis by CNBC Pro, whenever Nvidia shares fall, several stocks in the S&P 500 rise. U.S.-listed stocks include energy utility Xcel Energy, beverage makers Coca-Cola and Keurig Dr Pepper, food producer General Mills, healthcare company Solventum, Cencora, Becton, Dickinson and Co, AbbVie and defense contractor Lockheed Martin and Northrop Grumman. CNBC Pro screened stocks in the S&P 500 that were negatively correlated with Nvidia in July, with the chipmaker’s shares down 11.6% in the month. By comparison, the stock’s collective return for the month, as determined by CNBC, was 9%. NVDA YTD Line Disappointing tech earnings and looming rate cuts have dented some of the bullish sentiment on tech and semiconductor stocks. Instead, investors have recently begun to shift toward small-cap stocks, causing the Russell 2000 to rise 10.9% in July. By comparison, the S&P 500 rose 1.1%, while the tech-heavy Nasdaq fell 0.8%. In the table below, a value of negative 1 in the relevant column means that when Nvidia’s stock rises or falls, the shares of the companies listed below move in the opposite direction. A correlation of 0 means there is no statistical correlation between Nvidia’s stock and the stock prices of other companies. CNBC Pro’s analysis uses the Pearson correlation coefficient, the most common way to measure the linear correlation between two variables, such as stock prices. CNBC’s calculations only measure the direction and magnitude of daily price movements. No consideration is given to long-term returns. Correlated returns also do not indicate causation or guarantee future returns or price action patterns. The table below highlights the 10 stocks in the S&P 500 that had the strongest negative correlation with Nvidia’s stock price during the first week of August. Food maker General Mills is the only stock to have a negative correlation with Nvidia on a weekly and monthly basis. Nvidia’s decline over the past few weeks has prompted several investment banks to urge investors to buy the stock. Morgan Stanley said Nvidia’s sell-off in July was too deep, causing the stock to return to its “top pick” status in the chip sector. Meanwhile, Goldman Sachs continues to keep Nvidia on its August “Condemned List – Director’s Cut.” —CNBC’s Arjun Kharpal, Lisa Kailai Han and John Melloy contributed to this report.
When Nvidia shares fall, these 10 stocks usually rise | Real Time Headlines
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