It's been a brutal day of selling on the ASX boards this Thursday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has fallen by a nasty 1.9%. But the Core Lithium Ltd (ASX: CXO) share price is faring even worse.
Core Lithium shares are currently trading at $1.36 each, down an even nastier 2.9%. It was worse earlier this morning too. Core Lithium got down to $1.32 a share just before lunchtime, a loss of more than 5%. That comes after the ASX 200 lithium stock closed at $1.40 a share yesterday afternoon.
So what's going on with Core Lithium today that has elicited such a brutal sell-off?
Why is the Core Lithium share price down 3% today?
Well, today's share market woes seem to stem from what happened on the United States markets overnight. The flagship S&P 500 Index (SP: .INX) fell a depressing 2.5% last night following hawkish comments from the US Federal Reserve chief Jerome Powell. Powell told the markets that "we have a ways to go" with interest rate rises. Investors were not impressed.
So this pessimism has clearly flowed into the ASX today. There's been no news out of Core Lithium itself. But lithium stocks are often hit harder than the broader market during sharp sell-offs. They also tend to rise by more than the market these days when investors are in a good mood, but that's probably cold comfort today.
It appears this might be what's happening today. We've also seen some steep falls among Core Lithium's peers as well. Pilbara Minerals Ltd (ASX: PLS) shares were down by around 4% at one point today, while Lake Resources N.L. (ASX: LKE) shares have lost almost 5%.
No doubt ASX lithium investors will be hoping for a better day tomorrow. But even so, the Core Lithium share price remains up a healthy 27.8% over the past month.
