The S&P/ASX 200 Index (ASX: XJO) had a very pleasing day during trade today. As of market close, the ASX 200 gained a healthy 0.67%, putting the index at around 7,251.3 points. But that’s nothing compared to what the Novonix Ltd (ASX: NVX) sales price got up to this Wednesday.
Novonix shares were on fire today. The ASX battery technology company’s shares ended up soaring 6.04% to $1.93 a share today.
So what might have lifted Novonix’s boat so dramatically this session?
Why did the Novonix share price rise today?
Well, it’s nothing to do with anything out of Novonix itself. This company hasn’t made any ASX announcements in December at all, as of yet.
But what we do know today is that most ASX tech shares outperformed the broader market. The ASX 200 tech sector was one of the best-performing sectors on the ASX today, with many other tech shares enjoying stellar gains.
These included Xero Limited (ASX: XRO), up 2.97%, and Block Inc (ASX: SQ2), which rocketed 8.15%.
Lithium share Core Lithium Ltd (ASX: CXO) has also lifted by close to 2.64%.
So it’s possible that Novonix shares are getting a boost from what happened on the US markets overnight. Last night (our time), the US markets rocketed after a lower-than-expected inflation number. Lower inflation could mean lower interest rates.
And rising interest rates have been one of the prominent drivers in the rather awful year most tech shares, both here and over in the US, have endured in 2022.
The tech-heavy NASDAQ-100 (NASDAQ: NDX) was up a solid 1.1% last night, so it’s possible that these gains flowed into some ASX tech shares today, including Novonix.
The post Why did the Novonix share price have such a stellar run today? appeared first on The Motley Fool Australia.
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More reading
- Here are the top 10 ASX 200 shares today
- The Novonix share price has crashed another 14% already this week. What’s going on?
- Why did the Novonix share price crash 16% in November?
- These were the worst performing ASX 200 shares in November
- Here are the top 10 ASX 200 shares today
Motley Fool contributor Sebastian Bowen 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 and Xero. The Motley Fool Australia has positions in and has recommended Block and Xero. 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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