In the aftermath of the assassination attempt on former President Donald Trump, shares in gun manufacturers have experienced a significant surge. Smith & Wesson Brands, known for their pistols, revolvers, hunting rifles, and semiautomatic rifles, saw an 11% increase in their stock price, while Sturm, Ruger & Co., another prominent firearms manufacturer, rose by 5%.

Authorities have yet to disclose information regarding the specific manufacturer of the gun used in the shooting at a Trump rally in Pennsylvania over the weekend. However, the event has sparked speculation about potential unrest and a subsequent rise in firearms sales.

This kind of response from the stock market has been observed in recent years, where arms companies experience short-term gains following political or legal decisions perceived as increasing the risk of domestic turbulence or indicating a potential crackdown on firearms ownership. Analysts believe these stock market movements are often knee-jerk reactions by traders to current events and may not necessarily translate into increased sales.

Steve Sosnick, the chief strategist at Interactive Brokers financial group, cautioned against drawing conclusions solely based on stock rallies. He notes that the lasting impact on gun manufacturers' sales would only become evident when they release public statements or report their quarterly earnings. The overall financial performance of these companies continues to be the ultimate determinant of their success.

Although gun sales for both Ruger and Smith & Wesson experienced a surge during the pandemic, they have generally declined as the economy reopened. Sosnick emphasized that long-term evaluation of the companies should be based on their financial fundamentals rather than short-term market reactions.

Meanwhile, shares in Trump Media & Technology Group, the parent company of Truth Social, experienced a sharp increase as well. Trading in their stock remains highly volatile, driven by headline events. Former President Trump is the largest shareholder in the parent company.

As the aftermath of the assassination attempt unfolds, industry analysts and investors eagerly await further developments and financial reports from the firearms manufacturers. Only then will the true impact on their sales and stock performance become apparent.