Stock prices of gunmakers tend to rise following mass shootings in the United States, largely due to speculation that gun enthusiasts will buy up if they believe stricter regulations could be around the corner, and as expected, share rose briefly following Wednesday's mass shooting at a Florida high school.
Shares of Sturm Ruger and American Outdoor Brands rallied Wednesday afternoon as news of the shooting spread. The stocks closed 2.8 percent and 5.6 percent higher, respectively.
Stock prices of gunmakers often rise after mass shootings on the theory that people will stockpile weapons in anticipation of tougher gun-control laws.
History shows that Sturm Ruger and American Outdoor Brands rise 1.6 percent and 2.2 percent, respectively, five days after a mass shooting, a CNBC study using Kensho found. The study looked at their performance following mass shootings dating back five years.
It is unlikely that stricter gun regulation is on the way any time soon, as Republicans control all branches of the government.
President Donald Trump's victory over Hillary Clinton in the 2016 election ushered in a decline in gun sales last year, which some have labeled the "Trump slump", likely due to the abatement of fears that Democrats were looking to repeal the 2nd Amendment.