Gun Stocks Surge Higher As Supreme Court Rejects New York’s Concealed Carry Law

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Top Line

US gun- and ammunition makers’ stock prices jumped Thursday after the Supreme Court blocked a New York law prohibiting concealed carry, the broadest expansion of gun rights in more than a decade, Could lead to more rollbacks across the country.

Key Facts

In a 6-3 decision on Thursday, the US Supreme Court struck down a New York state law unless they had “reasonable reason” to do so and demonstrated “good moral character.”

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In a major blow to gun control advocates, Supreme Court justices ruled that New York’s concealed carry law prohibits “law-abiding citizens with simple self-defense needs” from practicing its Second Amendment law of holding a weapon in the Fourteenth Amendment. violated.

Share prices of major gun and ammunition manufacturers shot up after Supreme Court decision: The largest public U.S. gun maker (market value of $1.1 billion), Sturm, Ruger & Co., saw its stock jump nearly 2%.

Shares of Smith & Wesson Brands, the second-largest gunmaker ($600 million market value), rose nearly 6%, and major ammunition makers such as Vista Outdoor and Ammo Inc. also shot higher, both up by 3%. increased more.

Other gun- and ammo-related stocks also rose on Thursday: Big 5 Sporting Goods gained about 5% and American Outdoor Brands gained nearly 4%, while arms maker Exxon Enterprises gained more than 3%.

Main background:

Shares of gun and ammunition companies typically rise after mass shootings or amid political discussions around stricter gun laws, as Americans stock up ahead in anticipation of tougher sanctions. Amid the large number of mass shootings so far in 2022 (about 250), gun control legislation has been debated anew in Congress and elsewhere. Sturm, Ruger & Co stock is down only 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 have all fallen 20% or more, though .

Important Quote:

In the case of New York State Rifle and Pistol Association v. Bruen, the Supreme Court ruled on Thursday that the Second Amendment’s definition of the right to “hold a weapon” includes “carrying a handgun in public for self-defense.” Other constitutional rights do not require “individuals to demonstrate some special need to government officials,” the justices said.

What to look for:

Whether the Supreme Court’s decision on New York’s covert carry law would 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 rules where officials have some discretion when it comes to issuing concealed carry permits to citizens.

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Supreme Court repeals NY concealed carry law—could lead to nationwide rollbackForbes,

Credit: www.forbes.com /

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