The S&P/ASX 200 Index (ASX: XJO) is trading lower again on Thursday as investors weigh another difficult session from Wall Street.
At the time of writing, the ASX 200 is down 0.15% to 8,640 points.
Keep in mind, the index recovered from a much steeper fall earlier in the day. It dropped as low as 8,555.3 points before clawing back ground in afternoon trade.
Still, the benchmark remains under pressure. It is now down 1.65% over the past week, 1.19% over the past month, and 0.85% since the start of 2026.
So, what's weighing on the market today?
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Why the ASX 200 is falling
The weakness followed a rough night on Wall Street.
The Dow Jones Industrial Average Index (DJX: .DJI) fell 953 points, or 1.9%. The Nasdaq Composite Index (NASDAQ: .IXIC) dropped 2%, while the S&P 500 Index (SP: .INX) lost 1.6%.
The selloff came as investors reacted to renewed Middle East tensions, higher oil prices, and stronger inflation data.
According to Reuters, oil prices rose again as skirmishes between the United States and Iran put more attention on the Strait of Hormuz.
Brent crude is trading near US$94.58 a barrel, while WTI crude is fetching US$91.57.
US inflation is also back in focus after May CPI rose 4.25% over the year, according to reports. This has added to concerns that interest rates may need to stay higher for a bit longer.
Big stocks are holding the market back
A few major ASX 200 shares are weighing on the index today.
Fortescue Ltd (ASX: FMG) shares are down 1.7% to $19.33, while Commonwealth Bank of Australia (ASX: CBA) shares are 1.6% lower at $157.75.
Northern Star Resources Ltd (ASX: NST) is also under pressure, with its shares down 1.5% to $18.26 after another update from activist investor Elliott.
The technology sector is also under pressure. WiseTech Global Ltd (ASX: WTC) shares are down 2.7% to $37.02, following overnight weakness in US tech stocks.
Nonetheless, there are still some pockets of strength.
Lendlease Group (ASX: LLC) shares are also up 2.3% to $2.68, while Woodside Energy Group Ltd (ASX: WDS) shares are 1.6% higher at $31.52.
What happens next?
The ASX 200 has managed to recover from its lows today, but the market is still being pulled in different directions.
Oil is helping one corner of the market, while creating problems for others. If crude prices keep pushing higher, investors are going to keep worrying about what it means for inflation and interest rates.
Clearly there are still buyers around, but after last night's Wall Street selloff, it may take some time for nerves to settle.
