The BrainChip Holdings Ltd (ASX: BRN) share price is in negative territory today despite no announcements from the company.
At the time of writing, the artificial intelligence (AI) technology companyâs shares are down 3.17% to 91.5 cents.
For context, the S&P/ASX 200 Index (ASX: XJO) is also heading south by 1.97% to 6,849.5 points.
Read below to find out whatâs likely dragging down BrainChip shares on Thursday.
Whatâs happened to BrainChip shares?
Investors are selling off the BrainChip share price following a fall across the S&P/ASX All Technology Index (ASX: XTX) today.
Currently, the Aussie tech sector is retreating by 1.40% to 2,164 points.
This comes after US markets closed out August with losses as investors braced for the âSeptember effectâ. As dubbed by investors, the month of September has historically been a terrible month for share market returns.
In addition, US officials have ordered tech giant Nvidia to cease exporting its top two computing chips to China. Subsequently, the chip designer fell 6.56% after hours.
While this doesnât have any direct consequences for BrainChip, the fall rippled across the NASDAQ-100 (NASDAQ: NDX), which shed 0.57% overnight.
One last reason for weakness across the tech space could be investors weighing up the Federal Reserveâs fight against inflation.
The central bankâs chair Jerome Powell made short and sharp comments over the weekend about ramping up interest rates.
Economists are expecting a 0.75% rate hike to come in September.
BrainChip share price snapshot
The BrainChip share price has fallen 16% in the past month on the back of weakened sentiment.
For the majority of the calendar year, the share has traded sideways as the company has kept relatively quiet.
BrainChip shares reached an all-time high of $2.34 in January 2022, before sharply pulling back.
Based on todayâs price, BrainChip commands a market capitalisation of around $1.62 billion.
The post Why is the BrainChip share price in the red on Thursday? appeared first on The Motley Fool Australia.
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More reading
- The BrainChip share price has dumped 30% in a month. What’s happening?
- BrainChip share price up on 529% revenue surge
- Why did the BrainChip share price slump today?
- When is ASX tech share BrainChip expected to become profitable?
- Why is the BrainChip share price sinking today?
Motley Fool contributor Aaron Teboneras 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 Nvidia. The Motley Fool Australia has recommended Nvidia. 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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