Gun stocks rose Monday following the deadliest mass shooting in American history late Sunday night. A gunman in a hotel room at the Mandalay Bay in Las Vegas killed at least 58 people attending an outdoor concert and wounded over 500 more.
Shares of Sturm Ruger () were up 6%, while American Outdoor Brands ( ), the company formerly known as Smith & Wesson, gained nearly 7%. Both stocks have tended to rally in the immediate aftermath of mass killings, which sadly have become more routine.
The Pulse nightclub in Orlando in June 2016. San Bernardino in December 2015. The Aurora, Colorado movie theater and Sandy Hook Elementary School in Newtown, Conn. in 2012.
Investors had bet that these massacres would lead to tougher gun control laws, especially because of tough talk from President Obama.
The stricter laws never materialized. Instead, gun sales climbed during the Obama administration’s two terms as gun aficionados bought more firearms just in case rules changed at a national level or in individual states controlled by Democrats.
But shares of Sturm Ruger and American Outdoor Brands have both fallen sharply since Donald Trump, who was endorsed by the National Rifle Association, was elected president.
Investors had feared that a win by his opponent, Hillary Clinton, last year would have led to stricter regulations.