Cannabis Stocks Soar on Trump's CBD Endorsement for Seniors

The cannabis sector experienced a massive rally, with some stocks surging as much as 40%, following a social media video from former President Donald Trump that advocated for cannabidiol (CBD) use in senior healthcare and hinted at the possibility of Medicare coverage.

The unexpected endorsement triggered a speculative frenzy among investors, betting on a potential shift in the federal regulatory landscape for cannabis. Major cannabis-related equities felt the immediate impact. Shares of Tilray (TLRY) jumped over 40%, and the AdvisorShares Pure U.S. Cannabis ETF (MSOS), a key industry benchmark, on elevated trading volume.

Trump's video specifically promoted the benefits of non-psychoactive CBD for seniors, a significant voting demographic. The suggestion that its use could be covered by Medicare fueled hopes for a major regulatory shift, which has long been the primary obstacle for the U.S. cannabis industry. This development is particularly noteworthy given the historically cautious stance of the Republican party on federal cannabis reform.

Despite legalization across numerous states, cannabis remains a at the federal level, creating significant banking and operational hurdles for businesses. While there are ongoing efforts to reschedule cannabis to Schedule III, a move that would acknowledge its medical use, Trump's remarks have introduced a new and unexpected variable. "The video has ignited speculation about a more favorable federal stance on cannabis should Trump return to office," one analyst noted.

This rally represents a significant boost for a sector that has been under pressure. , the endorsement has injected fresh optimism into the market. However, the path to federal reform remains uncertain, and investors will be closely monitoring for any concrete policy proposals that may follow this surprising social media endorsement.