Shares of Sabre (NASDAQ:SABR) fell by as much as 10% today as investors continued a broader stock sell-off that began earlier this month. The S&P 500 fell 2.3% in afternoon trading and Sabre's stock is down 8.4% as of 2:21 p.m. EDT.
Market pessimism has taken hold in September: Month to date, the S&P 500 is down by 7.9%, and after rising for the first week, Sabre's stock has declined along with it. At this point, the travel industry tech company is down by 3.9% for the month.
There are a handful of reasons why investors are pushing stocks down right now, including the latest news that coronavirus cases are spiking in Europe and headed back upward yet again across much of the U.S. Some investors are concerned that if the pandemic continues to gain momentum again in Europe, it could cause politicians to implement lockdowns there again.
The pandemic has wreaked havoc on economies around the world, and fresh rounds of restrictions could slam the brakes on any nascent recoveries that countries have begun over the past couple of months.
Additionally, some investors are growing increasingly concerned that U.S. politicians haven't done enough to help workers who have lost their jobs because of the coronavirus. The U.S. unemployment rate is 8.4%, and a stalemate between Republicans and Democrats in Congress has left millions of people without financial help amid a steep recession.
Sabre investors should expect more volatility from the company's stock. With so much uncertainty right now, many stocks are experiencing wild price swings. Sabre's stock has already taken a massive beating, dropping 72% over the past 12 months, and more economic instability and increasing COVD-19 cases are causing a lot of worry among investors.