Why is the Vulcan Energy share price lifting today?

After suffering the last two trading days, the Vulcan Energy Resources Ltd (ASX: VUL) share price is back in the green today.

The clean lithium developer’s shares stumbled 1.60% and 2.25% on Friday and Monday, respectively.

But, with broader gains being achieved across the market today, Vulcan shares are currently up 1.02% to $7.90 apiece after hitting an intraday high of $8.23 a share, a gain of more than 5%.

What’s powering Vulcan Energy shares ahead on Tuesday?

Investors are bidding up the Vulcan Energy share price as the wider sector recovers from the volatility that’s occurred over the past two weeks.

As the S&P/ASX 200 Index (ASX: XJO) is 1.19% higher in late afternoon trading. The benchmark index is following Wall Street’s lead after US equities recorded modest gains overnight.

It appears the market has now factored in the upcoming interest rate hike by the US Federal Reserve.

Economists are expecting the central bank to lift interest rates by up to 100 basis points in an ongoing bid to cool down inflation.

The latest US CPI data showed inflation rose by 0.1% on a monthly basis and 8.3% over the last 12 months.

Also providing support today is the S&P/ASX 200 Materials (ASX: XMJ) sector which is the second-best performing index.

The sector is up 2.35%, slightly behind the leader, the S&P/ASX 300 Metals and Mining Index (ASX: XMM), up 2.42%.

Vulcan Energy share price snapshot

Bearish sentiment mixed with volatility has led the Vulcan Energy share price to fall 46% over the last 12 months.

The company’s shares reached an all-time high of $16.65 in September 2021, before moving on a downward channel.

Whether it can regain these highs largely depends on the price of lithium as well as Vulcan Energy’s progression on its Zero Carbon Lithium Project.

Based on today’s price, Vulcan Energy commands a market capitalisation of around $1.13 billion.

The post Why is the Vulcan Energy share price lifting today? appeared first on The Motley Fool Australia.

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More reading

• The Vulcan share price sank 7% today in ASX sea of red
• How are ASX lithium shares faring amid Wednesday’s carnage?
• Why Allkem, MA Financial, Neuren, and Vulcan Energy shares are pushing higher
• Here’s the lithium price forecast through to 2024
• Vulcan Energy share price up 5% on lithium project update

Motley Fool contributor Aaron Teboneras 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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