Cannabis Stocks Soar After Trump's CBD Endorsement
Rally follows former President's video promoting CBD for senior healthcare, sparking hopes for a favorable regulatory shift.
The cannabis sector experienced a broad and significant rally, with major stocks posting double-digit gains after former U.S. President Donald Trump publicly endorsed cannabidiol (CBD). The surge was ignited by a video Trump shared on his Truth Social account, which promoted the health benefits of CBD and .
The endorsement sparked a speculative frenzy across the industry, fueling investor hopes for a more favorable regulatory landscape. On the trading day following the post, shares of Tilray Brands (TLRY) , while other major players like Canopy Growth (CGC) and Aurora Cannabis (ACB) also saw substantial gains. The rally's breadth was captured by the AdvisorShares Pure U.S. Cannabis ETF (MSOS), which jumped over 25%.
This market reaction is tied to more than just the endorsement itself; it taps into ongoing discussions about federal cannabis policy. Trump has previously indicated a potential willingness to reclassify marijuana from a Schedule I to a Schedule III drug. Such a , unlocking major tax savings and streamlining medical research for cannabis companies. While the direct impact of the CBD video on official policy remains to be seen, investors are clearly interpreting it as a bullish signal for an industry awaiting federal reform.