Why is the Novonix share price plunging 6% on Wednesday?

The stock has handed back the gains it recorded yesterday.

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Key points

  • The Novonix share price is back in the red on Wednesday, tumbling more than 6% to trade at $2.29
  • It comes as the broader ASX technology sector also suffers and the ASX 200 info tech index slumps more than 2%
  • Interestingly, that's despite the Nasdaq Composite recording a decent gain overnight 

The Novonix Ltd (ASX: NVX) share price is sliding lower on Wednesday despite no news from the battery technology company.

However, the broader S&P/ASX 200 Information Technology Index (ASX: XIJ) is also suffering, sliding 1.9% so far today.

At the time of writing, the Novonix share price is $2.29, 6.15% lower than its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is recording a 0.35% slump and the All Ordinaries Index (ASX: XAO) has slipped 0.36%.

Let’s take a closer look at what might be going on with the ASX 200 battery materials and tech stock today.

Novonix share price plummeting 6%

The Novonix share price is dumping yesterday’s 4% gain, sinking more than 6% lower on Wednesday.

That leaves the stock 8% lower than it was at the end of last week and a whopping 44% lower than it ended May.

Interestingly, there’s been no price-sensitive news out of the ASX 200 share since late last month when it announced a notable change to its board.

Also interesting is the performance of ASX technology stocks today. The ASX 200 tech sector and S&P/ASX All Technology Index (ASX: XTX) are both tumbling despite a strong performance from the tech-heavy Nasdaq Composite overnight.

The US-based index gained 2.51% in Tuesday’s session overseas and the tech sector generally performs relatively in line with its performance.

The Novonix share price is joined by that of its ASX 200 peer Life360 Inc (ASX: 360). They’re both down around 6% right now.

Meanwhile, shares in TechnologyOne Ltd (ASX: TNE), Computershare Limited (ASX: CPU), and EML Payments Ltd (ASX: EML) have each fallen around 4%.

It’s not all doom and gloom, however. ASX 200 tech share Iress Ltd (ASX: IRE) is recording a 3.45% gain today.

Today’s dip is just the latest faced by the Novonix share price this year.

It’s currently down 75% year to date. Though, it has gained 8% since 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 EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended TechnologyOne Limited. 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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