The S&P/ASX 200 Index (ASX: XJO) is under pressure again on Tuesday, with the benchmark slipping deeper into a short-term slide.
At the time of writing, the ASX 200 is down 0.53% to 8,720 points. That puts the index at a 3-week low and extends a run of recent losses.
The move comes despite a relatively steady lead from the United States, where major indices have been holding near record levels.
Here's what is behind the latest drop.
Image source: Getty Images
Broad weakness across the market
Selling has been fairly widespread today, with most sectors sitting in the red.
Earlier reports showed around three quarters of the ASX 200 trading lower at one point in the session. That lines up with the current price action, with few clear pockets of strength.
The S&P/ASX 200 Financials Index (ASX: XFJ) and S&P/ASX 200 Materials Index (ASX: XMJ) are both softer, down 0.1% and 0.84% respectively. Given their heavy weighting in the index, this tends to hold the ASX 200 back.
Some of the major banks are mixed, while large miners like BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are edging lower.
The S&P/ASX 200 Health Care Index (ASX: XHJ) is also weaker, down 1.23%, adding to the broader drag on the index.
There are still a few standouts moving higher, but they are not large enough to offset the broader decline.
Oil and macro signals back in focus
One of the key factors sitting over the market right now is oil prices.
Brent crude has pushed higher in recent sessions, trading around the US$109 per barrel mark after a sharp rebound earlier in the week.
That move has been linked to renewed tension in the Middle East, particularly around stalled negotiations involving Iran.
Higher oil prices usually feed into inflation, which is where the market starts to pay closer attention.
Investors are already looking ahead to the next round of inflation data, which could shape expectations around interest rates.
There is also a Reserve Bank (RBA) meeting on the horizon, adding another layer of uncertainty for markets in the near term.
A run of losses starting to build
Today's decline also adds to a string of recent falls for the ASX 200.
The index is now tracking towards its longest losing streak since mid-2022, which highlights how sentiment has shifted over the past week.
While the moves each day have not been extreme, the consistency of the selling is starting to stand out.
Trading volumes have also been relatively light, which can sometimes amplify short-term moves on the market.
What to watch from here
From here, attention is likely to stay on the macro signals.
Inflation data, which is due tomorrow morning, will be a key input, along with any shifts in oil prices or geopolitical headlines.
The other piece is whether buying interest starts to return at these levels, or if the ASX continues to drift lower in the short term.
