The S&P/ASX 200 Index (ASX: XJO) looked like it was heading for a decent Friday after a strong lead from Wall Street.

However, those early gains have now disappeared.

The ASX 200 is down 0.09% to 8,725 points in early afternoon trade, after reaching 8,771 earlier in the session.

That means the index has dropped almost 47 points from its morning high.

So, what’s dragging the market lower right now?

A decent lead from Wall Street

There was actually plenty going the ASX 200’s way before today’s market open.

Wall Street finished comfortably higher overnight, with the S&P 500 Index (SP: .INX) gaining 1.14% and the Nasdaq Composite Index (NASDAQ: .IXIC) jumping 1.69%.

The Dow Jones Industrial Average Index (DJX: .DJI) also climbed 0.61%.

Oil prices moved lower as well, with Brent crude falling 1.6% to US$103.92 a barrel for its second straight decline.

Meanwhile, the US 10-year Treasury yield dropped back below 5% to around 4.93%.

That helped the ASX 200 open higher and climb around 0.45% in early trade.

However, it appears attention has now shifted back to interest rates here in Australia.

Rates are back in focus

The RBA has been back in the spotlight today after Governor Michele Bullock appeared before a parliamentary committee.

According to Reuters, said some of the inflation risks the RBA had warned about were now starting to emerge.

She pointed to higher oil prices and the global AI investment boom as two areas putting more pressure on prices.

The RBA has already lifted rates 3 times this year, taking the cash rate to 4.35%, but another increase could be coming.

Markets are now pricing a 93% chance of another 25-basis-point hike at the RBA’s 29 September meeting.

This would take the cash rate to 4.60%.

Banks weigh down the index

The big banks are doing plenty of the damage today, with all four major lenders trading lower.

Commonwealth Bank of Australia (ASX: CBA) shares are down 1.16% to $152.23, while National Australia Bank Ltd (ASX: NAB) is 1.10% lower at $38.79.

Westpac Banking Corp (ASX: WBC) has fallen 0.89% to $34.52, and ANZ Group Holdings Ltd (ASX: ANZ) is down 0.50% to $37.59.

Interestingly, the market underneath is actually holding up reasonably well.

At the latest reading, 105 ASX 200 shares were higher, 92 were lower, and 3 were unchanged.

Foolish takeaway

Friday’s session has turned into another fairly choppy one for the ASX 200 after two consecutive gains.

The index is now down around 1.1% over the past week and 3.8% over the past month.

With the next RBA decision coming on 29 September, interest rates will be a hot topic over the next few sessions.

The post ASX 200 slips into the red after a positive start. Here’s why appeared first on The Motley Fool Australia.

More reading

• Downgrade alert! 5 ASX 200 shares downgraded by experts this week
• Wall Street just shrugged off the Fed rate hike. Could the ASX 200 be next?
• 5 things to watch on the ASX 200 on Friday
• ASX shares investors are still buying despite volatility: survey
• ASX 200 rebounds from recent lows. Is this just another false start?

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.1% to 8,721 points on Friday.

Meanwhile, brokers have indicated continuing confidence in scores of ASX 200 shares this week.

Let’s see a sample.

Santos Ltd (ASX: STO)

The Santos share price is $8.51, down 0.8% today.

Over the past month, this ASX 200 energy share has risen 5%.

Bernstein renewed its buy rating on Santos shares on Monday.

The broker raised its 12-month price target from $8.90 to $10.10.

This suggests a potential 19% upside ahead.

Xero Ltd (ASX: XRO)

The Xero share price is $63.29, down 3.3% today.

This ASX 200 tech share has fallen 24% over the past month.

Citi reiterated its buy call on Xero shares with a price target of $113.60.

This implies potential capital gains of 80% ahead.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $34.57, down 0.8% today.

Over the past month, this ASX 200 bank share has fallen 0.3%.

UBS reaffirmed its buy rating on Westpac shares with a 12-month target of $45.

This suggests a potential 30% upside ahead.

Rural Funds Group (ASX: RFF)

The Rural Funds share price is $1.95, down 0.5% today.

This ASX 200 agricultural real estate investment trust (REIT) has fallen 11% over the past month.

UBS renewed its buy rating on Rural Funds Group shares with a $2.30 target.

This implies potential capital growth of 19% over the next year.

AMP Ltd (ASX: AMP)

The AMP share price is $2.49, down 0.2% today.

Over the past month, this ASX financial share has risen 6%.

Citi renewed its buy rating on AMP shares with a $2.60 target.

This suggests a potential 4% upside ahead.

Zip Co Ltd (ASX: ZIP)

The Zip share price is $2.21, down 0.5% today.

This ASX 200 financial share has fallen 13% over the past month.

Citi reiterated its buy rating on Zip shares on Monday.

The broker lowered its 12-month target from $3.55 to $3.20 per share.

This implies a potential 45% upside ahead.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is $3.57, up 2.7% today.

Over the past month, this ASX 200 gold share has fallen 1%.

Morgans renewed its buy call on Ramelius Resources shares with a $4.74 target.

This suggests a potential 33% upside ahead.

Morgans said:

RMS is expected to release FY27 guidance and an updated outlook to FY30 in Sep-26, following execution of the EPC contract for the Mt Magnet mill expansion, providing greater clarity on project costs and timing.

The post 7 ASX 200 shares with reaffirmed buy ratings this week appeared first on The Motley Fool Australia.

More reading

• Forget Xero shares! Broker tips this top ASX tech stock for 24% gains
• Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income
• Buy, hold, sell: James Hardie, REA Group, and Ramelius shares
• 5 things to watch on the ASX 200 on Friday
• Buy, hold, sell: AGL Energy, Telstra, Zip shares

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are steady at 8,732 points on Friday.

Among the 11 market sectors, materials and miners are in the lead today, up 1.4%.

The consumer staples sector is the laggard, down 0.88%.

The ASX 200 has slipped into the red for the calendar year to date

However, a major survey shows investors are continuing to add to their portfolio positions.

Meanwhile, brokers have reduced their ratings on several ASX 200 shares this week.

Let’s take a look.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $32.04, up 0.5% today and down 67% over 12 months.

Over the past month, this ASX 200 tech share has fallen 26%.

Rothschild & Co downgraded WiseTech shares to a hold rating on Monday.

The broker has a 12-month price target of $37.

This implies a potential 15% upside ahead.

West African Resources Ltd (ASX: WAF)

The West African Resources share price is $3.60, up 2.1% today and up 31% over 12 months.

Over the past month, this ASX 200 gold share has risen 4%.

Macquarie downgraded West African Resources shares to a hold rating today.

The broker has a 12-month price target of $4.

This suggests a potential 11% upside ahead.

Ansell Ltd (ASX: ANN)

The Ansell share price is $42, down 0.4% today and up 26% over 12 months.

Over the past month, this ASX 200 healthcare share has increased 18%.

RBC Capital downgraded Ansell shares to a hold rating on Tuesday.

The broker increased its 12-month price target from $36 to $38.

This implies a potential 10% downside ahead.

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price is $4.14, down 0.7% today and down 43% over 12 months.

Over the past month, this ASX 200 consumer discretionary share has fallen 11%.

Morgan Stanley downgraded Harvey Norman shares to a sell rating today.

The broker lowered its 12-month price target from $4.50 to $3.90.

This means a potential downside of 6% over the next year. 

Graincorp Ltd (ASX: GNC)

The Graincorp share price is $6.57, down 0.3% today and down 25% over 12 months.

Over the past month, this ASX 200 consumer staples share has risen 19%.

Macquarie downgraded Graincorp shares to a hold rating this week.

The broker shaved its 12-month price target from $7.10 to $7.

This suggests a potential 7% upside ahead.

The post Downgrade alert! 5 ASX 200 shares downgraded by experts this week appeared first on The Motley Fool Australia.

More reading

• ASX retail shares are down 13% in 2026. Here’s what Morgan Stanley is worried about
• Wall Street just shrugged off the Fed rate hike. Could the ASX 200 be next?
• Which ASX dividend shares are buys for passive income?
• 5 things to watch on the ASX 200 on Friday
• ASX shares investors are still buying despite volatility: survey

Motley Fool contributor Bronwyn Allen 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 Macquarie Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended Harvey Norman and WiseTech Global. The Motley Fool Australia has recommended Ansell and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.