Shares of major gun manufacturers rose in premarket trading Monday following the deadliest mass shooting in 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.
These gains usually occur after mass shootings on speculation that gun regulations may be tightened and sales may fall; some prospective owners decide to buy if they think the process would be harder in the future.
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%.