ASX 200 drops to a new 7-week low as banks and miners sink

ASX investors are facing another rough session.

The Aussie share market is struggling to find a floor on Wednesday, with another wave of selling pushing the benchmark index lower.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down 1.2% to 8,499 points.

That move has taken the index back to a new 7-week low, with banks and miners doing much of the damage.

The ASX 200 is now down around 5% over the past month and 2.5% since the start of 2026.

White declining arrow on a blue graph with an animated man representing a falling share price.

Image source: Getty Images

Banks and miners drag the market lower

Today's weakness is being led by two of the biggest sectors in the local market.

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are both down more than 2%, putting pressure on the S&P/ASX 200 Resources Index (ASX: XJR).

Gold miners are also weaker after the price of the yellow metal eased, with Evolution Mining Ltd (ASX: EVN) tumbling 5.19%.

The major banks aren't helping either. Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and ANZ Group Holdings Ltd (ASX: ANZ) are all lower.

The weakness has also spread as the session has gone on. By early afternoon, 7 of the 11 sectors were lower, while 146 of the 200 stocks in the index were trading in the red.

There are still a few pockets of strength, with Technology One Ltd (ASX: TNE), Wesfarmers Ltd (ASX: WES), and SGH Ltd (ASX: SGH) up 8.5%, 1.16%, and 2.1%, respectively.

Wall Street gives investors another reason to sell

The selling on the ASX follows another cautious session on Wall Street, where higher bond yields kept investors on edge.

Reuters reported that Asian shares fell for a fourth straight session on Wednesday, with markets still reacting to the move higher in US yields.

The US 10-year Treasury yield reached a 16-month high, while the 30-year yield touched its highest level since 2007.

Oil prices are also having a say. Brent crude remained above US$110 a barrel as investors watched tensions around Iran and the Strait of Hormuz.

Foolish Takeaway

The ASX 200 has a lot working against it today.

With the banks and miners both lower, the index is having a hard time holding its ground.

Inflation risks are still hanging around as well, which means investors have the RBA outlook to think about before buying the dip.

Until that changes, the market will struggle to find much support.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and Wesfarmers. The Motley Fool Australia has recommended BHP Group, Technology One, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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