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.
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%.
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