The Novonix Ltd (ASX: NVX) share price is taking off on Monday despite the company’s silence.
However, it’s not alone in the green. The battery technology and materials share is gaining alongside the S&P/ASX 200 Informational Technology Index (ASX: XIJ).
At the time of writing, the Novonix share price is $4.10, 9.92% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 1.19%.
Let’s take a closer look at what might be helping the ASX 200 tech stock higher today.
What’s going on with the Novonix share price today?
It’s a good day for the Novonix share price. And its day in the green is likely a welcome relief for those invested in the company.
Novonix came in as one of last week’s worst performing ASX 200 shares. It slumped 9.3% last week during which it announced a key member of its board had stepped down.
Additionally, the ASX 200 tech sector is leaping upwards today, likely due to data suggesting inflation in the United States may have peaked.
A US Commerce Department report released on Friday showed the nation’s personal consumption expenditures (PCE) price index rose 6.3% over the 12 months ended April.
That marks a slower rise than the prior month’s and suggests that inflation may be abating.
The tech-heavy Nasdaq Composite rose 3.33% on Friday amid the report’s release. It’s rebound seems to be rubbing off on its Australian counterpart.
Right now, the Novonix share price is the index’s second best performer. The tech sector is being led by the Block Inc (ASX: SQ2) share price’s 10.2% gain.
However, today’s gains haven’t been enough to boost Novonix’s stock back into the long term green.
It is still 61% lower than it was at the start of 2022. Though, it’s still 75% higher than it was this time last year.
The post Why is the Novonix share price leaping 10% on Monday? appeared first on The Motley Fool Australia.
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More reading
- 3 ASX 200 shares off to a cracking start to the week
- These were the worst performing ASX 200 shares last week
- ASX 200 midday update: Appen crashes, lithum shares jump
- Novonix share price surges higher despite billionaire’s board exit
- Novonix up 15% on Friday as the market recovers
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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