Cannabis Stocks Rally, Then Recalibrate After Trump’s CBD Push
When Donald Trump publicly endorsed the medicinal benefits of cannabidiol (CBD) for seniors in a late-September video, cannabis investors rushed to buy in. The president’s remarks — suggesting that Medicare should cover CBD for older Americans — sent a jolt through a long-sluggish market.
In the immediate aftermath of Donald Trump’s video extolling the health benefits of cannabidiol (CBD) and hinting at Medicare coverage, cannabis equities jumped sharply. According to sources, Tilray Brands (TLRY) skyrocketed ~40 % while Canopy Growth (CGC) climbed ~20 %. The sector’s flagship fund, the AdvisorShares Pure U.S. Cannabis ETF (MSOS), surged ~20.6 in a single trading session — an unusually strong move for the ETF.
However, it seems that the rally was driven not by fundamentals, but by a fresh dose of optimism that federal policy toward cannabis might finally pivot.
After Trump’s CBD Endorsement, Surge of Cannabis Stocks Seems to Settle Down
Market analysts quickly attributed the spike to renewed hopes that a Trump-led administration could loosen up federal rules on cannabis, or at least help expand CBD application in healthcare settings. Retail investors piled in, hoping that policy momentum might finally follow years of stalled reform.
But two weeks later, the market appears to have cooled off. Cannabis stocks remain above their pre-announcement levels, yet down from their short-lived highs. As of mid-October, Tilray trades near $1.72, Canopy Growth around $1.47, and MSOS fluctuates well below its late-September peak — though still up roughly 30% year-to-date. Once end-of-month analytical numbers are published, it will become clearer how these cannabis stocks have fared.
The pullback highlights how frail investor confidence remains in a sector still overshadowed by regulatory ambiguity. Despite growing bipartisan talk of rescheduling cannabis and relaxing federal tax rules, no official policy changes have been enacted since Trump’s remarks. Words without action are worth little. As long as there is no real regulatory movement, the market would simply crawl back to where it was.
Even so, the president’s comments have reawakened interest in the industry. Some analysts see the episode as a reminder that federal reform — once politically untouchable — is again part of the national conversation. Investors, meanwhile, appear to be holding their breath for concrete policy signals before placing bigger bets.
For now, the cannabis market’s post-Trump bounce may best be described as a “green flicker” rather than a full-blown “green wave.”
More on this topic from Soft Secrets:
S
Stephen Andrews
