The S&P/ASX 200 Index (ASX: XJO) is drifting lower on Thursday, despite some parts of the market holding up.
At the time of writing, the ASX 200 is down 0.20% to 8,612 points.
The move follows a weak session on Wednesday, when heavy selling across the major banks dragged the benchmark lower.
At present, 129 ASX 200 shares are trading lower, while 63 are higher and 8 are unchanged.
Let's take a closer look.
Image source: Getty Images
Most stocks are in the red
Most stocks in the index are falling today, with the benchmark being supported by a handful of heavyweight names.
BHP Group Ltd (ASX: BHP) is up 1.15% to $62.23, while Rio Tinto Ltd (ASX: RIO) is up 1.56% to $191.95.
Fortescue Ltd (ASX: FMG) is also higher, rising 1.91% to $22.99.
The big miners are benefiting from strength in commodity markets, with copper and iron ore stocks still attracting buyers.
Macquarie Group Ltd (ASX: MQG) is also lending a helping hand, rising 2.26% to $242.14.
Weakness spreads beyond the major stocks
Lynas Rare Earths Ltd (ASX: LYC) is one of the weakest links today, falling 7.34% to $18.44.
Xero Ltd (ASX: XRO) is also under pressure, dropping 7.21% to $75.16 after its latest result left investors unimpressed.
Other major fallers include Wisetech Global Ltd (ASX: WTC), REA Group Ltd (ASX: REA), and Pro Medicus Ltd (ASX: PME). They are down 5.16%, 4.30%, and 4.53%, respectively.
Bapcor Ltd (ASX: BAP) is also another weak spot after cutting its FY26 earnings guidance.
CBA steadies after record fall
Commonwealth Bank of Australia (ASX: CBA) is another stock in focus after Wednesday's record fall.
The bank's shares are bouncing slightly today, up 0.79% to $154.89.
That follows a painful session during midweek, when CBA shares dropped more than 10% after the bank released its quarterly update.
The bank reported an unaudited quarterly cash profit of $2.7 billion, down 1% on the prior quarter. Investors also concentrated on higher loan impairment expenses and the bank's stretched valuation.
Foolish Takeaway
A small decline in the index is not too worrying. But when most stocks are trading lower, it shows investors are still cautious and not willing to buy the market more broadly.
That doesn't mean the ASX 200 is in trouble. It just tells us that the rally needs wider support if it is going to keep pushing higher.
For now, the market is still rewarding strong updates but punishing anything that looks expensive or disappointing.
