Down 8%, why is the Vulcan Energy share price burning away today?

The Vulcan Energy Resources Ltd (ASX: VUL) share price has taken a tumble on Wednesday.

In afternoon trade, the lithium developer’s shares are down 8% to $5.43.

Why is the Vulcan share price tumbling?

Investors have been selling Vulcan shares on Wednesday amid broad market weakness following a poor night of trade on Wall Street.

For example, at the time of writing, the ASX 200 index is down a disappointing 1.1%.

Higher risk shares, such as lithium shares, have been hit harder than most today. This appears to have been driven by investors lowering their risk appetite following a resurgence in recession fears after weaker than expected consumer confidence data in the US.

It isn’t just Vulcan that is taking a tumble today in the lithium industry. Here’s a summary of how some of its peers are performing:

• The Core Lithium Ltd (ASX: CXO) share price is down 5%
• The Lake Resources N.L. (ASX: LKE) share price is down 3.5%
• The Piedmont Lithium Inc (ASX: PLL) share price is down 6%
• The Sayona Mining Ltd (ASX: SYA) share price is down 8%

Following today’s decline, the Vulcan share price has now lost 50% of its value since the start of the year.

The post Down 8%, why is the Vulcan Energy share price burning away today? appeared first on The Motley Fool Australia.

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More reading

• How is the Vulcan share price performing against its sector this month?
• 3 ASX All Ordinaries shares going gangbusters on Friday
• Why Betmakers, Block, Lake Resources, and Vulcan shares are racing higher
• ASX 200 midday update: Qantas’ market update, lithium shares rebound
• Vulcan share price rockets 25% on Stellantis deal

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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