Shares of U.S. firearms and ammunition makers jumped on Thursday after the Supreme Court struck down a New York law restricting concealed carry, the widest expansion of gun rights in more than a decade. a decade that could lead to further setbacks across the country.
In a 6-3 decision on Thursday, the U.S. Supreme Court struck down a New York state law prohibiting gun owners from having a concealed carry license unless they have a “good reason” to do so and demonstrate “good character”.
In a blow to gun control advocates, Supreme Court justices have ruled that New York’s concealed carry law violates the Fourteenth Amendment by preventing “law-abiding citizens with ordinary needs from self-defense” to practice their Second Amendment right to bear arms.
The stock prices of major firearms and ammunition makers surged following the Supreme Court ruling: America’s largest public arms maker ($1.1 billion market value), Sturm, Ruger & Company, saw its stock rise nearly 3%.
Shares of Smith & Wesson Brands, the second-largest gunmaker ($600 million market value), jumped more than 6%, and major ammunition makers such as Vista Outdoor and Ammo Inc. also increased, both up around 3% or more.
Other gun and ammunition-related stocks also rebounded on Thursday: Big 5 Sporting Goods jumped nearly 5% and American Outdoor Brands rose about 6%, while arms producer Axon Enterprises rose. gained more than 3%.
Stocks of gun and ammunition companies typically tend to rise after mass shootings or amid political discussions around tougher gun laws as Americans tend to stock up in anticipation stricter restrictions. Amid a high number of mass shootings – around 250 – so far in 2022, there has been renewed debate over gun control legislation in Congress and elsewhere. Shares of Sturm, Ruger & Company are down only around 8% this year, outperforming the rest of the market amid the ongoing sell-off in 2022. Shares of Smith & Wesson, Ammo Inc. and Vista Outdoor all fell by 20% or more, however. .
In New York State Rifle & Pistol Association v. Bruen, the Supreme Court ruled Thursday that the Second Amendment’s definition of the right to “bear arms” includes “the public carrying of handguns in self-defense.” Other constitutional rights do not “require individuals to demonstrate to government officials a special need,” the justices added.
To monitor :
Whether the Supreme Court’s decision on New York’s concealed carry law will set a precedent that could overturn similar laws in other Democratic states. At least eight other states and the District of Columbia all have similar regulations where authorities have some discretion when it comes to issuing concealed carry permits to citizens.
Supreme Court strikes down NY concealed carry law – could lead to nationwide rollbacks (TSWT)