September was a dire month for both the Novonix Ltd (ASX: NVX) share price and the broader S&P/ASX 200 Index (ASX: XJO).
Interestingly, however, there was no news from the battery technology and materials giant last month.
But that didn't stop the market from selling it off. After closing August at $2.42, the Novonix share price plummeted to end September at $1.76 – marking a 27.27% drop.
Meanwhile, the ASX 200 dumped 7.34% and the S&P/ASX 200 Information Technology Index (ASX: XJI) slumped 10.67%.
So, what might have gone wrong for the ASX 200 tech stock last month? Let's take a look.
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What weighed on the Novonix share price in September?
While there was no news from Novonix in September, there were plenty of factors that could have dragged on its share price.
Notably, interest rate hikes. The Reserve Bank of Australia and the United States Federal Reserve both hiked rates in a bid to tackle inflation in September, bolstering concerns that a recession could be nigh.
Such concerns, of course, likely weighed on the broader market too, but rising rates spell particularly bad news for tech stocks.
That's because many are also growth shares and plenty, like Novonix, are yet to turn a profit. Higher rates make borrowing cash more expensive while inflation can diminish the value of future earnings.
On that note, within the company's annual report – posted late in August – its auditors flagged that it's now "dependant" on capital raising activities to finance its growth, my Fool colleague Zach reports.
The auditor also noted "material uncertainty" surrounds the company's future. That likely sounds alarms for risk-averse investors, particularly in economic times such as those we find ourselves.
With all that in mind, it's probably not surprising that the Novonix share price trailed the broader market last month. Though, the stock is well versed in trading in the red.
The Novonix share price is currently 82% lower than it was at the start of 2022. It has also fallen 62% since this time last year.
For comparison, the ASX 200 has fallen 10% year to date and 6% over the last 12 months.
