Why is the ASX 200 sinking to a 5 day low today?

The ASX 200 is under pressure as heavyweights fall.

The S&P/ASX 200 Index (ASX: XJO) is having a tough session on Friday as investors react to weakness across several heavyweight corners of the market.

During midday trade, the ASX 200 is down 0.96% to 8,825 points.

That puts the benchmark index near its lowest level in 5 sessions, with more than half of the top 200 stocks trading in the red.

At the latest check, 108 shares are falling, 83 are rising, and 9 are unchanged.

So, what is dragging the market lower today?

Man with a hand on his head looks at a red stock market chart showing a falling share price.

Image source: Getty Images

BHP weighs on the market

The biggest drag is coming from the S&P/ASX 200 Resources Index (ASX: XJR) after BHP Group Ltd (ASX: BHP) shares dropped 3.68% to $62.65.

The decline follows news of another cost blowout at the mining giant's Jansen potash project in Canada. BHP has revealed higher expected costs for the second stage of the project, raising new concerns about its capital spending.

This has also put pressure on other big miners.

Rio Tinto Ltd (ASX: RIO) shares are down 2.91% to $177.75, while Fortescue Ltd (ASX: FMG) shares have slipped 0.75% to $19.82.

Banks are mixed

The big banks are also adding to the weakness today.

Commonwealth Bank of Australia (ASX: CBA) shares are down 0.60% to $161.26, while Westpac Banking Corp (ASX: WBC) shares are down 0.68% to $34.92.

ANZ Group Holdings Ltd (ASX: ANZ) shares have fallen 0.94% to $34.81.

However, National Australia Bank Ltd (ASX: NAB) shares are bucking the trend, up 0.40% to $37.49.

Not everything is falling

Despite the heavyweights pulling down the ASX 200, there are still a few bright spots on the board.

CSL Ltd (ASX: CSL) shares are up 2.96% to $111.28, giving the S&P/ASX 200 Health Care Index (ASX: XHJ) a lift after a difficult run in recent months.

Aristocrat Leisure Ltd (ASX: ALL) shares are also higher, rising 1.03% to $54.10, while Coles Group Ltd (ASX: COL) shares are up 0.86% to $23.57.

Meanwhile, Wesfarmers Ltd (ASX: WES) shares are slightly higher at $85.85, and Telstra Group Ltd (ASX: TLS) shares are up 0.10% to $5.075.

What happens from here?

The ASX 200 is still higher over the past month, so today's drop hasn't wiped out the recent run.

Nonetheless, the weakness in resources and banks shows how quickly the market can turn when its largest sectors move lower.

US markets are closed on Friday for the Juneteenth holiday, which means investors will have to wait until Monday night for the next move from Wall Street.

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 CSL and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group, CSL, 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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