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Shares of gun makers rallied Monday, in the wake of what has been described as the deadliest mass shooting on U.S. soil.
Smith & Wesson parent American Outdoor Brands Corp.’s stock AOBC, +4.64% jumped 2.3% in morning trade, Sturm, Ruger & Co. Inc. shares RGR, +5.03% climbed 3.7% and Vista Outdoor Inc. shares VSTO, +2.48%  rose 1.4%. 
Analysts say the regulatory environment is among the biggest drivers of demand for guns, as fears of tighter regulation have boosted gun sales and share prices in the past. Since President Trump was elected, however, fears of tighter regulations have faded and share prices have dropped
American Outdoor’s stock had tumbled 46% since the election through Friday, and closed at a 2 ½-year low of $13.31 as recently as Sept. 11. Sturm, Ruger shares have shed 20% since the election, and had also hit a roughly 2 ½-year low in September. Vista Outdoor’s stock, which hit a record low in April, has plunged 40% since the election.  

In contrast, the S&P 500 index SPX, +0.31%  had run up 18% since the election.
American Outdoor was upgraded last week at Wedbush Securities, citing a survey suggesting demand was still strong, but buyers just lacked a sense of urgency.
In other market reactions to the mass shooting in Las Vegas, shares of casino operators MGM Resorts International MGM, -3.04%  shed 1.9% in morning trade and Wynn Resorts Ltd. WYNN, -0.32%  slipped 0.2%. Las Vegas Sands Corp.’s stockLVS, +0.51%  edged up 0.4%.

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