U.S. cannabis stocks rallied sharply this week after former President Donald Trump hinted at supportive policy changes that could reshape the industry. In a Truth Social video posted Sunday, Trump advocated for Medicare coverage of CBD (cannabidiol) products derived from hemp, highlighting their potential benefits for seniors managing pain, stress, and sleep issues.
This is the second encouraging signal from Trump in recent weeks regarding cannabis. Earlier, he suggested he may support reclassifying cannabis at the federal level, moving it from a Schedule I controlled substance to a lower-risk category. These policy hints have sparked strong buying momentum in cannabis stocks, particularly among major producers.
Cannabis Stocks Rally
Tilray Brands (TLRY) surged by 42% in a single trading day, making it the standout winner. Aurora Cannabis (ACB) followed closely with a 25% jump, extending its recent gains. Meanwhile, Canopy Growth (CGC) and Cronos Group (CRON) also posted solid increases of 18% and 15%. Although CGC and CRON have since fallen back to earlier price levels, TLRY and ACB have retained most of their rally-driven strength, boosting confidence in select cannabis stocks.
Market Outlook for Cannabis Stocks
According to Grand View Research, the U.S. cannabis market is expected to grow from $38.5 billion in 2024 to $74.0 billion by 2030, representing an impressive CAGR of 11.51%. This growth projection continues to make cannabis stocks attractive to speculative investors. However, risks remain high. Many companies have relatively small market capitalizations, and the sector's volatility is well-known.
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