Of all the sectors benefiting from political momentum, cannabis stocks may not have been the first to come to mind. Yet, much like the cryptocurrency and semiconductor markets, cannabis stocks are suddenly seeing a surge after an unexpected boost from former President Donald Trump.
On Sunday, Trump shared a promotional video from the Commonwealth Project on Truth Social. The video highlights the use of hemp-derived CBD to improve seniors’ health and quality of life, with calls for Medicare to cover cannabis-based treatments. This move sent shockwaves through the financial world, as investors immediately turned their attention toward cannabis stocks.
Cannabis Stocks React to Trump’s Post
Within hours of Trump’s post, some of the largest cannabis stocks experienced sharp gains. Tilray Brands (TLRY) surged by 60.9%, Cronos Group (CRON) jumped 12.9%, and Canopy Growth Corp. (CGC) climbed 17.2%. Analysts say these movements show just how sensitive cannabis stocks are to political news, particularly when it comes from high-profile figures like Trump.
The video even cited a PricewaterhouseCooper study, estimating that the U.S. could save $64 billion annually if cannabis were fully integrated into the healthcare system. For investors, this strengthened the argument that cannabis stocks represent not just a speculative opportunity, but also a long-term growth sector tied to healthcare reform.
Reclassification Could Drive More Growth
What’s fueling further optimism is the ongoing discussion about reclassifying marijuana from a Schedule I to a Schedule III drug. Such a shift would not federally legalize cannabis but would reduce penalties, expand medical research, and open the door for pharmaceutical companies to enter the market. For cannabis stocks, this could be the catalyst for an even greater rally.
Lobbyists and industry leaders are urging Trump to finish what the Biden administration began, and with his recent actions, many believe reclassification is back on the table. If this change happens, cannabis stocks could see a steady climb rather than short-term spikes.
The Market Outlook for Cannabis Stocks
With federal restrictions potentially easing, that number could grow even higher. While political resistance remains, particularly among some Republicans pushing for stricter hemp laws, the momentum behind cannabis stocks is undeniable.
Final Thoughts
For investors, cannabis stocks are becoming one of the most talked-about sectors on Wall Street. Between Trump’s endorsement, growing public support, and the possibility of reclassification, cannabis stocks may be on the verge of a new era of growth. Those who get in early could reap significant rewards as the industry matures.
