The Novonix Ltd (ASX: NVX) share price has taken a tumble on Thursday.
In afternoon trade, the battery materials and technology company's shares are down over 5% to $2.55.
Image source: Getty Images
Why is the Novonix share price sinking?
Investors have been selling down the Novonix share price on Thursday amid broad market weakness.
It isn't just Novonix that is falling, the majority of shares on the S&P/ASX 200 index (ASX: XJO) have dropped into the red. This has led to the benchmark index falling 2% today.
Investors have been hitting the sell button following a selloff on Wall Street overnight after the US Federal Reserve increased rates by 0.75% and warned of more pain ahead.
Higher risk shares, such as battery materials shares, have fared poorly and are falling even more than the market.
For example, the Lake Resources N.L. (ASX: LKE) share price is currently down 5% and the Liontown Resources Ltd (ASX: LTR) share price has fallen 3%.
Though, it is worth noting that even after today's sizeable decline, the Novonix share price is still up almost 50% since this time last month. That strong gain was driven largely by news that the company has been earmarked for a US$150 million government grant from the US Department of Energy.
