Gun stocks rise after Las Vegas mass shooting

Stock prices of the biggest firearms companies jumped Monday as investors feared the mass shooting in Las Vegas could lead to tougher gun laws.

Gun sales have soared after previous mass shootings — and in response to other current events, including the election of Barack Obama and the death of Supreme Court Justice Antonin Scalia, who had defended a narrow interpretation of the 2nd Amendment protecting gun ownership.

American Outdoor Brands, parent of Smith & Wesson, had been trading down more than 25% so far this year. It closed Monday at $15.74, up about 3.2%.

Sturm Ruger & Co. surged 3.48%, closing at $53.50. Vista Outdoor stock rose 2.4% to $23.50. Olin Corp., which owns the Winchester trademark, soared 6.63% to $36.52.

With the exception of Olin, the companies had been faring poorly since Trump’s election, with stock prices down as much as 36% in the case of Vista.

The rise in gun stock prices during the Obama years came despite any moves toward further gun restrictions. Sales of handguns rose 287% annually from 2006 to 2013, while sales of rifles and long arms rose 166%, according to the U.S. Fish and Wildlife Service.

Lacey Wallace, an assistant professor of criminal justice at Penn State University, said gun sales tend to rise in the first few months after major shooting incidents, and then settle back down. The more attention an incident receives in the media, the higher the spike, she found.

She based her findings on a tally of criminal background checks for gun purchases, which rose after six major mass killings between 2000 and 2009.