The ASX 200 is finally rising. Is the sell-off running out of steam?

After weeks of selling, buyers are finally pushing back.

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September has been a rough month for our local share market.

The S&P/ASX 200 Index (ASX: XJO) has fallen in five of its past 6 sessions, including another 0.88% decline on Tuesday.

Wednesday is finally giving investors some relief, with the benchmark index up 0.26% to 8,695 points at the time of writing.

That still leaves the ASX 200 down around 2.5% over the past week and 4.6% over the past month. The index has now slipped slightly into negative territory for 2026.

So, is the market starting to find its feet?

A man jumps over a river, bouncing from one rock to another.

Image source: Getty Images

Buyers are starting to come back

There is a bit more support under the market today than we have seen recently.

At the latest check, 105 of the top 200 shares were higher, compared with 84 lower and 11 unchanged.

The gains are being helped along by some of the ASX's biggest resources stocks.

BHP Group Ltd (ASX: BHP) shares are up 1.13% to $59.92, while Rio Tinto Ltd (ASX: RIO) shares have gained 0.81% to $165.83.

Fortescue Ltd (ASX: FMG) shares are also 1.05% higher at $16.39.

Energy shares are doing even better, with oil prices still elevated as tensions in the Middle East continue.

Woodside Energy Group Ltd (ASX: WDS) shares are up 3.12% to $33.36, and Santos Ltd (ASX: STO) shares have climbed 2.22% to $8.74.

There's still plenty to watch

That being said, one better session doesn't mean the recent weakness is over.

The ASX 200 closed at 9,127 points on 26 August, which leaves it more than 400 points below that level today.

There's also plenty happening outside Australia that could keep investors on edge.

Oil prices remain high, while the US 10-year Treasury yield has pushed above 5%, adding another challenge for share markets.

Wall Street finished lower again overnight, with the Dow Jones Industrial Average Index (DJX: .DJI) falling 0.63%, the S&P 500 Index (SP: .INX) down 0.45%, and the Nasdaq Composite Index (NASDAQ: .IXIC) dropping 0.78%.

Investors are now waiting for the Federal Reserve's next interest rate decision and any clues on what could come after it.

Foolish takeaway

I wouldn't read too much into one positive session just yet.

The ASX 200 has been under pressure for most of September, so today's rise could simply be a dead-cat bounce.

What I'd rather see is the index put together a few decent sessions and start working its way back towards 8,800.

Until that happens, I'd be careful about calling the recent sell-off over.

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. 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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