Why is the Novonix share price tanking 5% today?

The Novonix Ltd (ASX: NVX) share price has taken a tumble on Thursday.

In afternoon trade, the battery materials and technology company’s shares are down over 5% to $2.55.

Why is the Novonix share price sinking?

Investors have been selling down the Novonix share price on Thursday amid broad market weakness.

It isn’t just Novonix that is falling, the majority of shares on the S&P/ASX 200 index (ASX: XJO) have dropped into the red. This has led to the benchmark index falling 2% today.

Investors have been hitting the sell button following a selloff on Wall Street overnight after the US Federal Reserve increased rates by 0.75% and warned of more pain ahead.

Higher risk shares, such as battery materials shares, have fared poorly and are falling even more than the market.

For example, the Lake Resources N.L. (ASX: LKE) share price is currently down 5% and the Liontown Resources Ltd (ASX: LTR) share price has fallen 3%.

Though, it is worth noting that even after today’s sizeable decline, the Novonix share price is still up almost 50% since this time last month. That strong gain was driven largely by news that the company has been earmarked for a US$150 million government grant from the US Department of Energy.

The post Why is the Novonix share price tanking 5% today? appeared first on The Motley Fool Australia.

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More reading

• A major shareholder sold off most of its Novonix shares last week. What’s happening?
• Novonix shares go for a swim after burning through $25 million
• Why $6.5b Argo Investments is backing these ASX 200 lithium shares
• Down 65% in 2022, chair says Novonix ‘share price will respond appropriately’
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro 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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