Gun stocks are rallying after the Florida school shooting

  • Gun stocks are rallying after the Florida school shooting.
  • This market reaction has become a pattern after mass shootings amid speculation that people may want to buy more guns if they're worried about new regulations.

The shares of gun manufacturers rose in premarket trading Thursday after the deadliest mass shooting of the year. 

At least 17 people died in the shooting at Marjory Stoneman Douglas High School in Parkland, Florida. 19-year-old Nikolas Cruz, the suspected gunman, was armed with an AR-15 semiautomatic rifle and "countless magazines," the Broward County Sheriff's Office said. 

American Outdoor Brands, formerly Smith & Wesson, gained 4.4% premarket, while Sturm, Ruger & Co. rose 3%. Olin Corporation, which makes ammunition, gained 2.3%. They all extended Wednesday's gains.

RELATED: Check out the U.S. states with the strictest gun laws:

25 PHOTOS
States with the toughest gun laws
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States with the toughest gun laws

24. Indiana

Grade: D-

Source: gunlawscorecard.org

(Photo credit should read KAREN BLEIER/AFP/Getty Images)

T-23. North Carolina

Grade: D-

Source: gunlawscorecard.org

(Chuck Liddy/Raleigh News & Observer/MCT via Getty Images)

T-23. New Hampshire

Grade: D

Source: gunlawscorecard.org

(Photo credit should read DOMINICK REUTER/AFP/Getty Images)

T-21. Virginia

Grade: D

Source: gunlawscorecard.org

(Photo by Jabin Botsford/The Washington Post via Getty Images)

T-21. Ohio

Grade: D

Source: gunlawscorecard.org

(Photo by Spencer Platt/Getty Images)

20. Nebraska

Grade: D

Source: gunlawscorecard.org

(Photo via Getty Images)

19. Wisconsin

Grade: C-

Source: gunlawscorecard.org

(Photo by John Gress/Corbis via Getty Images)

18. Nevada

Grade: C-

Source: gunlawscorecard.org

(Photo via Getty Images)

T-16. Michigan

Grade: C

Source: gunlawscorecard.org

(Photo via Getty Images)

T-16. Iowa

Grade: C

Source: gunlawscorecard.org

(Photo by Luke Sharrett/Bloomberg via Getty Images)

15. Oregon

Grade: C

Source: gunlawscorecard.org

(Photo via REUTERS/Lucy Nicholson)

14. Colorado

Grade: C

Source: gunlawscorecard.org

(Photo via REUTERS/Rick Wilking/File Photo)

13. Pennsylvania

Grade: C

Source: gunlawscorecard.org

(Photo credit should read DOMINICK REUTER/AFP/Getty Images)

12. Minnesota

Grade: C+

Source: gunlawscorecard.org

(Photo via AOL)

11. Delaware

Grade: B

Source: gunlawscorecard.org

(Photo via Getty Images)

10. Washington

Grade: B

Source: gunlawscorecard.org

(Photo via Getty Images)

9. Rhode Island

Grade: B+

Source: gunlawscorecard.org

(Photo by Kenneth C. Zirkel via Getty Images)

8. Illinois

Grade: B+

Source: gunlawscorecard.org

(Photo via REUTERS/Jim Young)

7. Hawaii

Grade: A-

Source: gunlawscorecard.org

(Photo via Getty Images)

T-5. New York

Grade: A-

Source: gunlawscorecard.org

(Photo via REUTERS/Shannon Stapleton)

T-5. Maryland

Grade: A-

Source: gunlawscorecard.org

(Photo credit BRENDAN SMIALOWSKI/AFP/Getty Images)

4. Massachusetts

Grade: A-

Source: gunlawscorecard.org

(Photo via Getty Images)

3. New Jersey

Grade: A-

Source: gunlawscorecard.org

(Photo by Mark Makela for The Washington Post via Getty Images)

2. Connecticut

Grade: A-

Source: gunlawscorecard.org

(Photo via Getty Images)

1. California

Grade: A

Source: gunlawscorecard.org

(Photo credit MARK RALSTON/AFP/Getty Images)

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This market reaction has become a pattern after mass shootings because of speculation that people would want to buy firearms sooner rather than later before any new regulations are introduced. 

But the Trump administration has not been a boom for gun companies. Sturm Ruger, for example, said demand was stronger than normal in 2016 likely because of election campaigning, but then tanked in 2017. Its third-quarter earnings per share fell in half from the prior year. 

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SEE ALSO: This timeline shows exactly how the Florida high school shooting unfolded

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Markets

DJIA 24,083.83 59.70 0.25%
NASDAQ 7,003.74 -3.62 -0.05%
S&P 500 2,639.40 4.84 0.18%
NIKKEI 225 22,215.32 -62.80 -0.28%
HANG SENG 30,328.15 -308.09 -1.01%
DAX 12,422.30 -128.52 -1.02%
USD (per EUR) 1.22 0.00 -0.04%
USD (per CHF) 0.98 0.00 0.04%
JPY (per USD) 109.36 0.00 0.00%
GBP (per USD) 1.39 0.00 -0.02%

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