Why is the Core Lithium share price leaping 8% on Friday?

A man leaps high in the air over sand.A man leaps high in the air over sand.

The Core Lithium Ltd (ASX: CXO) share price is continuing to recover from its disastrous Wednesday performance today.

At the time of writing, the Core Lithium share price is trading $1.23, 7.89% higher than its previous close.

For context, the broader market is also in the green today. The S&P/ASX 200 Index (ASX: XJO) is up 0.72% right now. Meanwhile, the All Ordinaries Index (ASX: XAO) is boasting a 0.81% gain.

 Let’s take a closer look at what might be going on with the ASX lithium share on Friday.

Is this driving the Core Lithium share price today?

Core Lithium stock is rebounding alongside many of its ASX lithium peers today after the sector suffered a major tumble earlier this week.

The company’s stock slumped 20.43% on Wednesday after a bearish outlook from Goldman Sachs and reports Chinese electric vehicle manufacturer BYD is aiming to produce its own lithium.

Today’s (and yesterday’s) gains might, therefore, be a simple market correction following the sell-off event.

Indeed, fellow ASX lithium shares such as Pilbara Minerals Ltd (ASX: PLS), Liontown Resources Limited (ASX: LIO), and Lake Resources NL (ASX: LKE) are rebounding today. They’re currently up 5.04%, 5.8%, and 10.5% respectively.

Additionally, shares in lithium giant Mineral Resources Limited (ASX: MIN) is among the leaders of the ASX 200 today, having gained 4.1%.

Despite Wednesday’s downfall, the Core Lithium share price is still 95% higher than it was at the start of 2022. It has also gained more than 370% since this time last year.

The post Why is the Core Lithium share price leaping 8% on Friday? appeared first on The Motley Fool Australia.

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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 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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