Shares of gunmakers Smith & Wesson and Sturm Ruger rose 9.8 percent and 3.7 percent, respectively, in premarket trading Monday following the massacre in Orlando, Florida.
Authorities said Sunday 50 people were killed, including the gunman, and 53 were wounded during the attack at a gay nightclub in Orlando. Jerry Demings, Orange County sheriff, said the massacre “could definitely be classified as domestic terrorism.”
James Hardiman, a Wedbush Securites analyst covering Smith & Wesson, said the stock prices of gunmakers generally rise after such attacks due to increased demands for gun control.
“History would suggest the more awful and tragic the event, … and as the rhetoric of gun control rises, the stocks go up,” he said.