Novonix share price dives again, down 19% in two weeks

The Novonix Ltd (ASX: NVX) share price is in the red once more today, tumbling to its lowest point since January 2021.

The tech favourite’s downfall comes amid a broader market sell-off and despite the strong performance of its home sector.

The Novonix share price is $1.835 right now, 3.93% lower than its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has recovered much of its earlier slump to trade 1.26% lower this afternoon. At the same time, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is one of a handful of sectors trading in the green. It’s lifted 1.02% right now.

So, what’s going wrong with the Novonix share price? Let’s take a look.

Novonix share price extends losses on Monday

The Novonix share price tumbled to a new 52-week low of $1.805 earlier today, marking a 5.5% fall.

Its tumble came amid a sell-off event that has seen the S&P/ASX 200 Materials Index (ASX: XMJ) slump 4.62% at the time of writing.

And therein might lie the reason behind Novonix’s suffering today.

While the company is technically at home in the technology sector due to its work in the lithium battery industry, it’s also involved in the development and supply of graphite anode material. Thus, it’s feasible that it’s trading more in line with the materials sector today.

The sector appears to be experiencing a major sell-off amid growing fears of a recession.

Additionally, Novonix’s stock has been on a downhill trajectory lately, falling 18.8% over the last fortnight.

Its struggles seemingly kicked off amid the latest round of inflation data from the United States. That news saw Wall Street fall from its September peak, with the Dow Jones Industrial Average Index (DJX: .DJI) slumping 8.6% between 12 September and Friday’s close.

The Novonix share price’s latest fall sees it 83% lower than it was at the start of 2022. It has also fallen 72% since this time last year.

The post Novonix share price dives again, down 19% in two weeks appeared first on The Motley Fool Australia.

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• Could this be a red flag or false alarm for Novonix shares?
• Novonix share price sinks 7% amid Wall Street walloping
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• Why is the Novonix share price soaring 7% on Tuesday?

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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