Less than a month ago, the S&P/ASX 200 Index (ASX: XJO) was trading as high as 9,282 points.
Today, it is sitting at 8,901 points.
That is a fall of more than 380 points from its August peak, with the index now down around 1.8% over the past week and almost 4% over the past month.
Wednesday has added a little more pressure, with the ASX 200 down 0.22% at the time of writing after briefly falling to 8,888 points earlier in the session.
The move comes after Tuesday's 1% slide, which pushed the market to its lowest closing level in 6 weeks.
A 4% pullback is hardly a crash, but the benchmark index has clearly lost some momentum.
So, is this becoming a more serious sell-off?
Image source: Getty Images
Interest rates are back in focus
One of the biggest concerns is interest rates, with investors facing the possibility that the RBA may not be finished hiking just yet.
The Reserve Bank lifted the cash rate to 4.35% in August, its third increase of 2026, and comments from senior officials this week have kept another move on the table.
Deputy Governor Andrew Hauser said on Tuesday that inflation remains "too high" and questioned whether the rate increases delivered so far would be enough.
Assistant Governor Sarah Hunter also said the board may need to lift rates again if inflation turns out to be stronger than expected.
That could weigh on companies that are more sensitive to interest rates and changes in consumer spending.
Oil prices are another issue, with Brent crude recently pushing towards US$100 a barrel as the conflict in the Middle East continues.
The selling is fairly widespread
It is not just a handful of large companies pulling the market lower either.
At the time of writing, around 120 ASX 200 shares are in the red, compared with 72 trading higher and 8 unchanged.
The major banks are among the biggest drags. Commonwealth Bank of Australia (ASX: CBA) shares are down 2.35% to $154.96, while National Australia Bank Ltd (ASX: NAB) shares have fallen 1.79% to $38.18.
Meanwhile, Westpac Banking Corp (ASX: WBC) shares are down 1.26% to $34.15 and ANZ Group Holdings Ltd (ASX: ANZ) shares are 0.43% lower at $36.78.
There is some support coming from the resources sector, with higher commodity prices helping several of the market's biggest miners.
BHP Group Ltd (ASX: BHP) shares are up 2.29% to $63.98, while Rio Tinto Ltd (ASX: RIO) shares have climbed 2.03% to $179.58.
Is the sell-off serious?
At this stage, I wouldn't call a 4% fall a serious correction.
The ASX 200 is still up around 2% in 2026, and some of today's weakness comes from several large companies trading ex-dividend.
Those dividends are taking around 8.4 points off the index today, so not all of the decline reflects actual selling.
