Novonix share price loses 20% in dire week for ASX 200 tech stocks

The battery technology and materials stock was caught up in this week’s sell-off.

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A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward representing the ASX tech share sell-off today

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Key points

  • The Novonix share price managed to gain 1.2% over the final two sessions of this week. Unfortunately, that wasn't enough to recover from its earlier tumble
  • The stock closed the week at $2.50 – nearly 20% lower than it closed last week's trade
  • Novonix's struggle came amid a broader ASX 200 sell-off largely brought about by suffering on Wall Street

The S&P/ASX 200 Index (ASX: XJO) has closed on a dire week for ASX tech stocks, in which the Novonix Ltd (ASX: NVX) share price was one of the hardest hit.

The battery materials and technology stock plunged 19.94% over the market’s four-day week. As of Friday’s close, the Novonix share price is $2.50.

For context, the ASX 200 tumbled 6.6% in that time, and the S&P/ASX 200 Information Technology Index (ASX: XIJ) slumped 9.8%.

Let’s take a closer look at what went wrong for Novonix and its ASX 200 technology peers this week.

What went wrong with the Novonix share price this week?

The Novonix share price struggled this week alongside many of the market’s favourite tech stocks.

Block Inc (ASX: SQ2), Xero Limited (ASX: XRO), and WiseTech Global Ltd (ASX: WTC) dropped 25%, 11%, and 9% respectively.

The tech sector’s tumble came on the back of a similar downturn on Wall Street in the United States.

Since the US market closed on Thursday (Friday Aussie time), the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) has slipped 9.4%.  

Meanwhile, the benchmark S&P 500 plummeted into bear market territory during Monday’s session overseas.

That likely lead the broader Australian market to tumble when it opened after the Queen’s Birthday long weekend on Tuesday.

Interestingly, Novonix’s stock actually gained on Thursday and Friday, lifting 1.2% over the consecutive sessions.

However, it fell 8% on Tuesday and was the ASX 200’s worst performer on Wednesday, plunging 14%.

This week’s downturn included, the Novonix share price has fallen 72% since the start of 2022. It’s also 76% lower than it was this time last year.

Motley Fool contributor Brooke Cooper 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, Inc., WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, 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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