Why did the Novonix share price just soar 13%?

a small boy dressed in a superhero outfit soars into the sky with a graphic backdrop of a cityscape.a small boy dressed in a superhero outfit soars into the sky with a graphic backdrop of a cityscape.

The Novonix Ltd (ASX: NVX) share price is surging ahead today.

The battery technology company’s share price is rising more than 8% to $2.63. However, in earlier trade, the company’s share price lifted 13% before pulling back. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.3% today.

Let’s take a look at what could be impacting Novonix.

Novonix share price rises

The Novonix share price is lifting, but it is not alone among ASX technology shares today. The S&P/ASX All Technology Index (ASX: XTX) is jumping 1.5% today. Elmo Software Ltd (ASX: ELO) shares are lifting 11%, while Block Inc (ASX: SQ2) shares are up 4%,

The technology heavy NASDAQ jumped 4.1% in the United States on Wednesday. This was the biggest daily jump since 2020, Reuters reported.

This followed Federal Reserve chairman Jerome Powell alleviating some investor concerns, despite a 75 basis points hike. Leuthold Group chief investment strategist Jim Paulsen said in comments cited by the publication:

He (Powell) did not commit to any specific rate hike in the September meeting

Novonix Limited American Depository Shares (NASDAQ: NVX) soared 11.65% in the USA on Wednesday. Novonix started trading on the NASDAQ via its American Depositary Receipts under the ticker NVX in February this year.

Novonix is working on battery technology solutions for use in electric vehicles and a clean energy future.

Federal Treasurer Jim Chalmers introduced legislation into parliament on Wednesday providing tax incentives for electric vehicles, the Canberra Times reported.

Also in the US, Bloomberg reported overnight that two US Senators have struck a deal on legislation that could extend the tax credit for electric vehicles.

Novonix released a quarterly update to the market yesterday, including cash receipts of $2.5 million and an operating cash outflow of $7.9 million.

Novonix share price snapshot

The Novonix share price has climbed 4% in the past year, but it has slumped 71% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed nearly 7% in a year.

Novonix has a market capitalisation of about $1.3 billion based on the current share price.

The post Why did the Novonix share price just soar 13%? appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor Monica O’Shea 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. and Elmo Software. The Motley Fool Australia has positions in and has recommended Block, Inc. and Elmo Software. 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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