The stock market took a U-turn on Thursday, erasing all the gains it made on Wednesday as investors continued to worry about the impacts of high inflation and the interest rate hikes that central banks are implementing to get it back in check. As of 11:40 a.m. ET, the S&P 500 was down 2.1%, and the tech-heavy Nasdaq has lost 2.9%.

Companies tied to the electric vehicle industry were getting hit especially hard, with Rivian Automotive (NASDAQ: RIVN) down 5% and Chinese luxury EV-maker Nio (NYSE: NIO) falling 8.2%. Farther up the supply chain, Lithium Americas (NYSE: LAC), which is still getting its operations to mine lithium for electric car batteries up and running, was off by 4.2%.

The reasons for those share price declines in the EV industry are both company-specific and macroeconomic. On the company level, Rivian received a vote of confidence from investment bank Truist Wednesday night. Initiating coverage of Rivian with a buy rating, Truist's analyst predicted the stock -- which closed Wednesday at $35.08 -- will nearly double to $65 within a year. But investors aren't buying it.

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Source Fool.com