ASX 200 charges higher as buyers return after Monday’s sell-off

The S&P/ASX 200 Index (ASX: XJO) is getting a decent bounce on Tuesday after a tough start to the week.

At the time of writing, the ASX 200 is up 1.02% to 8,592 points.

Monday’s sell-off left the index at its lowest level in around 7 weeks, with higher oil prices, inflation worries, and Middle East tensions weighing on the market.

But today’s risk appetite looks very different.

Buyers have moved back into a wide spread of shares, with strength coming from banks, supermarkets, healthcare stocks, insurers, and property names.

The rebound helps steady the market after a rough few weeks, although it doesn’t wipe out the recent damage.

The ASX 200 is still down around 1.3% over the past week and 4% over the past month. It also remains slightly lower in 2026.

Broad buying returns

The rebound is fairly broad, with buyers returning across most parts of the market.

At the latest check, 136 ASX 200 stocks are trading higher, while 59 are lower and 5 are unchanged.

Most sectors are also in positive territory, although the S&P/ASX 200 Materials Index (ASX: XMJ) remains the weak spot, down 0.76%.

A softer session for miners is weighing on that part of the market, with lithium, rare earths, and resources shares under pressure.

Liontown Resources Ltd (ASX: LTR), Lynas Rare Earths Ltd (ASX: LYC), and Pilbara Minerals Ltd (ASX: PLS) shares are down 5.60%, 5.07%, and 2.75%, respectively.

But the rest of the market is doing more than enough to offset that weakness.

Woolworths Group Ltd (ASX: WOW) is up more than 4% after a broker upgrade, while Pro Medicus Ltd (ASX: PME) is 3.90% higher, and QBE Insurance Group Ltd (ASX: QBE) is up 4.28%.

Brambles Ltd (ASX: BXB) is also clawing back some ground after Monday’s heavy fall. Its shares are up 0.91% after falling yesterday on the back of an FY26 earnings guidance downgrade.

Oil cools after a wild run

A pullback in oil prices is also helping the market settle after Monday’s heavy selling.

Brent crude futures fell more than 2% after US President Donald Trump said he was holding off a planned attack on Iran while negotiations continued.

Reuters reported that Brent crude dropped to around US$109 a barrel in early Asian trade.

The fall has taken some heat out of the market after oil surged on fears of a wider conflict in the Middle East.

Energy prices are still elevated, so investors are unlikely to treat the risk as gone.

But the drop has given the market some breathing room, especially after energy prices helped drive Monday’s sell-off.

The post ASX 200 charges higher as buyers return after Monday’s sell-off appeared first on The Motley Fool Australia.

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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 recommended Lynas Rare Earths Ltd and Pro Medicus. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.