Cannabis investors woke up to big news this week as cannabis stocks spiked following comments from former President Donald Trump. In a post on Truth Social, Trump shared a video praising the health benefits of hemp-derived cannabidiol (CBD), sparking fresh optimism across the cannabis sector.
Shares of Tilray, Canopy Growth, and Aurora all surged in double digits after the announcement, highlighting how sensitive cannabis stocks are to political signals. The video described CBD as a potential game-changer for senior healthcare, offering an alternative to expensive prescription drugs. Investors quickly interpreted this as a sign of growing mainstream acceptance of cannabis-derived products.
Back in 2018, the Farm Bill legalized hemp-derived CBD nationwide. More recently, he hinted that his administration would reclassify cannabis from a Schedule I drug where it currently sits alongside heroin and LSD to Schedule III, a less restrictive category that includes substances like steroids and Tylenol with codeine.
If enacted, that change could dramatically impact cannabis stocks. Reclassification would not only ease criminal penalties but also reduce tax burdens for cannabis businesses. It could also pave the way for more medical research, opening new opportunities for both Big Pharma and cannabis companies. Legal experts say new Health and Human Services standards acknowledging credible scientific support for cannabis use are already laying the groundwork.
While this sounds promising, experts caution that the reclassification process is lengthy and uncertain. Still, the mere possibility of reform has injected fresh momentum into cannabis stocks, which have struggled with volatility throughout 2024. Some companies have seen their shares lose value, while others have posted gains of more than 30%. This week’s surge shows how quickly sentiment can shift in the cannabis sector.
Political momentum is also fueling optimism. The potential for federal reform whether through reclassification, expanded banking access, or broader legalization remains a key driver for cannabis stocks. Investors are closely watching Washington for updates, as each policy move could reshape the market landscape.
Despite uncertainty, cannabis stocks remain attractive to risk-tolerant investors looking for long-term growth. The mix of political developments, public health conversations, and increasing consumer demand continues to create opportunities, even amid volatility.
For now, the buzz around Trump’s remarks has reminded Wall Street just how reactive cannabis stocks can be to policy signals. With billions in potential market growth at stake, every step toward federal reform could mean another rally for cannabis stocks.
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