Why is the Novonix share price down 9% today?

A group of disappointed board members.A group of disappointed board members.

The Novonix Ltd (ASX: NVX) share price is sliding today and is currently down 9.05% at $3.62.

Despite no market-sensitive updates, investors are selling off Novonix shares today on a volume of 3.5 million shares at the time of writing, well ahead of the four-week average.

What’s happening with Novonix?

It’s not abundantly clear what is driving down the Novonix share price. However, in wider market moves, the S&P/ASX All Technology Index (ASX: XTX) is also down 6.23% today as tech shares take a beating.

This brings the index’s loss to 19% for the month, and 34% for the year to date. A wave of macroeconomic pressures appears to be weighing in, most notably inflation, interest rates, and tension in Europe.

As reported by the Motley Fool earlier this week, tech shares have continued to slide on a global scale, as these pressures continue to tighten the rope further.

The continued downturn in the American markets follows the US Federal Reserve’s decision to raise interest rates.

Despite this, Novonix has made inroads in successfully uplisting to the NASDAQ, and made other operational progress, as covered by my colleague Tristan.

As such, analysts at Morgans have retained a hold rating on the stock, holding the view that not much has changed fundamentally for the company in spite of it taking a hit to its earnings from the listing.

Novonix share price snapshot

In the last 12 months, the Novonix share price has held onto a 77% gain after a bumper year in 2021. This year to date however, losses have been extensive and the stock is down more than 60%.

It is also down 22% over the past month.

The post Why is the Novonix share price down 9% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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