Kirk Assassination Makes Gun Stocks Volatile: 8 Names To Watch, Including One Backed By Trump's Son
News Summary
Shares of gun and ammunition manufacturers experienced volatility, initially rising, following the assassination of conservative political activist Charlie Kirk in Utah and a school shooting in Colorado on Wednesday. Key companies like Sturm Ruger & Company (RGR), Smith & Wesson Brands Inc (SWBI), and Olin Corp (OLN) saw gains, while others such as Digital Ally (DGLY) and GrabAGun Digital Holdings (PEW) declined. President Donald Trump's eldest son, Donald Trump Jr., is an investor and board member of GrabAGun, which went public via a SPAC merger earlier this year. While gun stocks often trade higher around violent events, partly due to the belief that more regulation will follow, the current administration under pro-gun supporter Trump and a Republican-backed Congress makes new regulatory measures unlikely.
Background
Recent years have seen a rising wave of violent plots and attacks targeting political figures in the U.S., including an assassination attempt on President Donald Trump in July 2024. Other incidents involved Minnesota legislators and an assault on former House Speaker Nancy Pelosi's husband. As of September 10th, there have been 46 school shootings in the U.S. this year. Historically, gun stocks tend to trade higher following violent events. For instance, background checks hit record highs heading into the 2020 election, and gun stocks soared on the belief that regulation would increase if Joe Biden won the presidency. However, with pro-gun supporter President Trump in office and a Republican-backed Congress, significant federal regulation on the gun sector is unlikely to emerge.
In-Depth AI Insights
What drives the volatility in gun stocks despite a pro-gun administration? - Short-term volatility in gun stocks is typically driven by a