Cannabis Watch: Cannabis stocks rocket to a record day after Biden lights the fuse

by | Oct 6, 2022 | Stock Market

Cannabis stocks shot to record gains Thursday after President Joe Biden formally sought to review how marijuana is classified under federal law, a change that pot producers in the U.S. and Canada have long sought after months of stalled federal reform that soured enthusiasm in the industry. The moves buoyed the cannabis sector after steep losses in 2022, even as more states launch adult-use and medical programs for cannabis. But in Canada, producers continue to lose money and face stiff competition.

The announcement also follows Biden’s shifting stance over the years on pot — from opposing legalization to eventually supporting some degree of decriminalization and medical cannabis consumption. And it comes as Democrats try to whip up support for this year’s midterm elections  and as many Republican lawmakers remain wary of legalization. But some analysts expressed skepticism, and appeared to be waiting for more specifics from the announcement and bolder reforms. “Marijuana-related stocks such as Tilray, (Sundial) and Canopy Growth soared on the news as the broader market fell,” Capital Alpha Partners analyst Ian Katz wrote in a note Thursday. “But if investors were betting that Biden’s action will lead to legalization of marijuana, they will li …

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