Gun stocks are soaring after the deadliest mass shooting in modern US history

Shares of major gun manufacturers rose in premarket trading Monday following the deadliest mass shooting in modern US history. 

Fifty people were killed and more than 200 injured in the shooting Sunday night in Las Vegas, Nevada. Gunman Stephen Paddock opened fire from the 32nd floor of the Mandalay Bay Casino, aiming into a close-packed crowd of thousands of people who were watching a country music festival, police said. 

American Outdoor Brands (formerly Smith & Wesson) and Sturm, Ruger & Co. rallied nearly 4%. 

Gun stocks tend to rally after mass-shooting incidents. Heightened conversation about gun control raises speculation that people would want to buy firearms sooner rather than later before any regulations were tightened. In its annual reports, American Outdoor Brands has said to investors several times that "speculation surrounding increased gun control at the federal, state, and local level and heightened fears of terrorism and crime" can affect demand for its products. 

Gun sales have been on the decline since the election, according to several manufacturers and the FBI's database of background checks that serves as a proxy. Purchases reached a record last year, but President Donald Trump's surprise victory eased concerns that regulations would be tightened.   

American Outdoor Brands fell 46% from the election through Friday's market close, while Sturm Ruger was down 19%. 

RELATED: Politicos sound off on Vegas shooting

Politicos sound off on deadly Las Vegas shooting
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Politicos sound off on deadly Las Vegas shooting
LAS VEGAS, NV - OCTOBER 02: A cowboy hat lays in the street after shots were fired near a country music festival on October 1, 2017 in Las Vegas, Nevada. A gunman has opened fire on a music festival in Las Vegas, leaving at least 20 people dead and more than 100 injured. Police have confirmed that one suspect has been shot. The investigation is ongoing. (Photo by David Becker/Getty Images)
Michelle & I are praying for the victims in Las Vegas. Our thoughts are with their families & everyone enduring another senseless tragedy.
Las Vegas, we are grieving with you—the victims, those who lost loved ones, the responders, & all affected by this cold-blooded massacre.
The crowd fled at the sound of gunshots. Imagine the deaths if the shooter had a silencer, which the NRA wants to make easier to get.
Our grief isn't enough. We can and must put politics aside, stand up to the NRA, and work together to try to stop this from happening again.
I’m praying for all the victims, their families, and our first responders in the #LasVegas #MandalayBay shooting.
Not again. My heart is with Las Vegas this morning. Sending prayers to the victims and their families. #LasVegas
My warmest condolences and sympathies to the victims and families of the terrible Las Vegas shooting. God bless you!
Las Vegas killer had "in excess of 10 rifles" in a nation awash with easy-to-acquire guns. Feel safe? Thanks, @NRA.…
NRA estimating that it will take 8 days for everyone to forget about this so they can resume bankrolling politicians

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SEE ALSO: 50 people are dead and more than 200 injured after a mass shooting in Las Vegas

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