The Core Lithium Ltd (ASX: CXO) share price was is a star among ASX lithium shares today.
Core Lithium shares are jumping 4.69% to fetch $1.675 on Friday. For perspective, the S&P/ASX 200 Index (ASX: XJO) is lifting 2.78% today.
Let’s take a look at what is impacting the Core Lithium share price on Friday.
Whatâs going on?
Core Lithium was not the only ASX lithium share rising today. For example, Allkem Ltd (ASX: AKE) shares are leaping 1.9%, while Lake Resources N.L. (ASX: LKE) shares are jumping 4.21%.
Core Lithium appears to follow in the footsteps of US lithium shares. Livent Corp (NYSE: LTHM) shares soared 8.69% overnight, while Sociedad Quimica y Minera de Chile (NYSE: SQM) rose 4%.
This followed the best US stock market rally in two years. A better than expected US inflation report lifted shares, with the US consumer price index rising just 0.4% in a month. Tim Courtney from Exencial Wealth said, in comments cited by CNBC:
Interest rates are still running everything in markets.
With todayâs CPI number coming down, the market is now betting pretty clearly that they think the interest rate [rises] are coming close to an end. So, you see those interest rate sensitive stocks doing really, really well.
Meanwhile, Global Lithium LLC founder Joe Lowry had some positive news on the lithium price today. Asked by 3AW if high lithium prices can be sustained in the medium term, he said:
Absolutely, it’s all supply and demand, and the EV market is taking off, driving demand.
There’s really nothing in the cards in the few years to bring the price back to the old level.
Share price snapshot
Core Lithium has soared 184% in the year to date, while it has surged 47% in the past month.
For perspective, the ASX 200 has lost 3% in the past year.
Core Lithium has a market capitalisation of more than $3 billion based on the current share price.
The post Why is the Core Lithium share price having such a top run on Friday? appeared first on The Motley Fool Australia.
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More reading
- 3 ASX 200 lithium shares smashing all-time highs on Friday
- Here are the 3 most traded ASX 200 shares on Friday
- Here are the top 10 ASX 200 shares today
- Here are the 3 most traded ASX 200 shares on Thursday
- Why Block, Lake Resources, Pendal, and Xero shares are dropping today
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 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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