On Monday, cannabis stocks experienced a significant rise following a video by President Donald Trump promoting the inclusion of cannabidiol (CBD) under Medicare coverage.
The Tilray brand saw a jump of nearly 20%, with its shares increasing by 36% shortly after the market opened. Canopy Growth also grew by around 20%, while Cronos Group climbed by 13%.
Aurora Cannabis rose 13.3%, and cannabis stocks were highlighted as some of Wall Street’s top picks, almost hitting the 20% increase mark.
Additionally, firms like Greensam Industry, Caral Aargh Holdings, and Innovative Industrial Real Estate experienced notable share price increases on the same day.
The Advisorshares Pure US Cannabis ETF surged more than 25%, potentially marking its strongest quarter yet. Still, the sector remains unstable, with many companies struggling despite experiencing revenue growth.
The video, lasting nearly three minutes, was produced by a group called the Commonwealth Project. It features a narrator advocating for broader access to CBD for both Trump and seniors.
The narrator stated, “The elderly suffer unnecessarily,” adding that “hemp-derived CBD can enhance their quality of life, helping them feel better and live longer.”
This video might ease some anxieties in the cannabis sector, which has been closely tied to possible shifts in US drug policy.
In August, Trump mentioned he was pondering the reclassification of marijuana as a low-risk substance “in the coming weeks,” but no action has materialized yet, particularly as Congress tightens regulations surrounding hemp.
Meanwhile, some Republican members are advocating for stricter rules on CBD products that contain trace amounts of THC, the component responsible for marijuana’s psychoactive effects.
The Commonwealth Project’s video promotes CBD as a means to “recover” the endocannabinoid system, enhance life expectancy, and assist with issues like pain, sleep disturbances, and stress management.
The video even suggests swapping out traditional prescription medications, illustrating a pill bottle labeled “Probably suited for your blood pressure.” The narrator claims that one in five seniors is already utilizing CBD.
This initiative is led by Howard Kessler, a veteran in financial services who has shifted his focus toward medical cannabis, according to the project’s website.
