Cannabis stocks surged in pre-market trading on Monday after former President Donald Trump publicly endorsed cannabidiol (CBD) as a potential breakthrough in senior healthcare.
In a weekend social media post, Trump suggested that CBD could help slow disease progression and serve as an alternative to prescription medications for older adults. The statement ignited a wave of optimism across the cannabis sector, which has long awaited political momentum at the federal level.
Investors responded swiftly: Canopy Growth and Tilray Brands each jumped by roughly 20%, while Cronos Group and Aurora Cannabis rose more than 13%. The AdvisorShares Pure U.S. Cannabis ETF (MSOS) also spiked more than 20%, positioning it for a record quarterly return of nearly 70%.
Market analysts noted that Trump’s endorsement has fueled speculation about possible federal regulatory changes, including a long-debated reclassification of cannabis. Currently listed under Schedule I, cannabis companies face heavy tax burdens under Section 280E, which prevents them from claiming standard business deductions. A move to a lower classification could ease these restrictions, open capital markets, and provide a stronger foundation for growth.
Though unexpected, Trump’s comments are being viewed as a potential catalyst for renewed momentum in the industry. For a sector that has battled years of financial and regulatory headwinds, the political signal may mark a turning point in both perception and performance.
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