Number of Negative-Beta Stocks in S&P 500 Hits Highest Since 1990
Nashnova编辑部
121 S&P 500 stocks now move against the index on a rolling six-month basis — the most since 1990. The headline calm hides a deep split between the AI camp and everything else.
What is "negative beta," and why is the count spiking?
Negative beta means a stock tends to move opposite to the index — when the market rises, it falls, and vice versa. The S&P 500 now has 121 such stocks, a post-1990 record.
The data comes from Evercore ISI strategist Julian Emanuel's team, using a rolling six-month window.
This means → the index's low headline volatility is masking sharp divergence underneath — stocks are quietly moving against each other even as the benchmark looks steady.
What is driving the split?
Emanuel says the core force is the market fracturing into "AI stocks" versus "non-AI stocks."
Since the start of 2026, capital has poured into AI-linked memory and infrastructure names — Micron, SanDisk, and Caterpillar posted strong gains, while once-hot software stocks were hit hard.
In plain terms = money made a massive migration between "AI-adjacent" and "not-AI-adjacent," and that migration is what pushed so many stocks into the opposite direction from the index.
The last peak was in 2001 — should investors worry about a bubble?
The previous spike in negative-beta count came in early 2001, during the dot-com bust.
Emanuel acknowledges the parallel excites bears, but argues this time is different: the divergence reflects the market learning "not to put all its eggs in one theme."
This means → he reads a high negative-beta count as healthy diversification, not a crash signal.
Who sits in the negative-beta camp?
The ten largest negative-beta S&P 500 stocks are dominated by defensive sectors: four consumer staples names (Walmart, Costco, Coca-Cola, Philip Morris International), two energy (ExxonMobil, Chevron), two healthcare (Johnson & Johnson, AbbVie), and two communications (Verizon, T-Mobile US).
The most negative betas belong to ExxonMobil and Chevron, both at -0.80 — they move hardest against the index.
This reflects a market where defensives have become a natural hedge layer as capital chases the AI theme.
What does this mean for investors?
Emanuel remains broadly bullish, projecting the S&P 500 could reach 9,000 within 12 months (Monday's close: 7,745).
He also warns: in a world where "nearly every asset is tied to AI in ways investors may not fully appreciate," diversification is harder — but the negative-beta cluster offers a ready-made portfolio offset.
In plain terms = if you want to reduce single-theme AI exposure, these stocks naturally "move the other way." Whether this divergence holds or fades with a style rotation is the key test for the entire narrative.
Content is for reference only, not financial advice.