Wednesday’s mass shooting at a Florida high school which killed 17 people briefly lifted shares of gun manufacturers before coming back down to pre-shooting levels on Thursday.
During trading on Wall Street, the stock prices of Sturm Ruger and Smith and Wesson’s parent company, American Outdoor Brands, rose by as much as 2.8 percent and 4.5 percent respectively, according to CNBC.
The share prices of both companies then retreated in trading on Thursday.
As of 3:00pm Eastern time on Thursday, shares of Sturm Ruger & Company were down 0.75 points from its previous close of 50.10.
People (above) are brought out of the Marjory Stoneman Douglas High School after a shooting at the school left 17 people dead. The shooting spurred a spike in the stock prices of gun manufacturers
During trading on Wall Street, the stock prices of Sturm Ruger and Smith and Wesson’s parent company, American Outdoor Brands, rose by as much as 2.8 percent and 4.5 percent respectively
The share prices of both companies then retreated in trading on Thursday
American Outdoor Brands was trading at a slight gain of 0.05 points.
It is normal for the share price of gun makers to spike immediately after a mass shooting.
That is because of speculation that consumers would be more eager to buy up guns in the short term before the government would introduce legislation restricting gun sales, according to Business Insider.
The share price of Vista Outdoor, a company whose subsidiaries produce guns, ammunition, and other accessories, did not appear to be affected by the shooting.
Vista Outdoor, American Outdoor Brands, and Sturm Ruger are the only three gun manufacturers that are publicly traded on the New York Stock Exchange.
All other gun-makers are privately owned.
The share price of Vista Outdoor, a company whose subsidiaries produce guns, ammunition, and other accessories, did not appear to be affected by the shooting
The gun industry in the United States generates $13.5billion in revenue annually, according to IBISWorld.
Authorities said an ex-student, identified as Nikolas Cruz, walked into the Marjory Stoneman Douglas High School in Parkland, near Miami, on Wednesday and opened fire with an AR-15-style assault rifle in the second-deadliest shooting at a public school in US history.
Wednesday’s shooting was the 18th in a US school this year, according to gun control group Everytown for Gun Safety.
It stirred the long-simmering US debate on the right to bear arms, which are protected by the Second Amendment of the US Constitution.
President Donald Trump addressed the shooting in a White House speech that emphasized school safety and mental health while avoiding any mention of gun policy.