Cannabis Market Explodes on Trump’s Surprise CBD Endorsement
Shares of cannabis companies surged in premarket trading Monday after U.S. President Donald Trump highlighted the potential role of cannabidiol (CBD) in senior healthcare. In a Truth Social post on Sunday, Trump said hemp-derived CBD could “revolutionize senior healthcare” by slowing disease progression and serving as an alternative to prescription drugs.
The comments follow Trump’s earlier suggestion that his administration is exploring reclassifying marijuana, a move that could ease criminal penalties and reduce industry restrictions.
Investors reacted quickly: U.S.-listed shares of Canopy Growth and Tilray Brands jumped nearly 20% before markets opened, while Cronos Group gained 9.5% and Aurora Cannabis rose 13.7%. The AdvisorShares Pure U.S. Cannabis ETF climbed 25.2%, putting it on track for a record quarterly gain of about 70%.
“MSOS, the largest U.S. marijuana-focused ETF, is indicated up 20% at the open and benefiting from President Trump’s surprise Sunday support for the potential benefits of CBD, with any support going a long way for this beleaguered listed sector,” said Ben Laidler, head of equity strategy at Bradesco BBI.
Trump previously eased regulations around hemp and CBD with the Agriculture Improvement Act during his first term. But marijuana is still classified as a Schedule I substance under federal law, considered to have a high potential for abuse and no accepted medical use. The Department of Health and Human Services, under former President Joe Biden, recommended shifting it to Schedule III, which covers drugs with lower risks of dependency.
Trump “already hinted that they were planning to reclassify it. This doesn’t mean it’s legalizing the drug, but it does reduce some of the burden on the companies,” said Daniela Hathorn, senior market analyst at Capital.com. “I do think there is further room for these stocks to move higher if it’s confirmed that the reclassification is happening.”
Reclassification could also lift a heavy tax burden on cannabis businesses, open doors for U.S. stock exchange listings, and help align federal law with state-level legalization in nearly 40 states.
