Shares of cannabis companies surged on Monday after U.S. President Donald Trump highlighted the potential benefits of cannabidiol (CBD) in senior healthcare through a Truth Social post.
Trump suggested that hemp-derived CBD could “revolutionize senior healthcare” by slowing disease progression and serving as an alternative to prescription drugs. His remarks fueled a sharp rally across marijuana-related stocks.
U.S.-listed cannabis firms saw strong gains: Canopy Growth rose 18.3%, Tilray Brands soared 42%, Cronos Group climbed 15.5%, and Aurora Cannabis advanced 25.4%. Exchange-traded funds also rallied, with AdvisorShares up 21.8% and Roundhill gaining 21.6%, both on track for their best quarterly performance ever with returns above 70%.
Analysts noted that Trump’s surprise endorsement provided a much-needed boost to the sector. “Any support goes a long way for this beleaguered industry,” said Ben Laidler, head of equity strategy at Bradesco BBI.
During his first term, Trump signed the Agriculture Improvement Act, which eased regulations on hemp and CBD. Marijuana, however, still remains a Schedule I drug under U.S. law, classified as having high abuse potential and no accepted medical use.
Reclassification of marijuana is now under review. While former President Joe Biden directed the Department of Health and Human Services to recommend moving it to Schedule III, Trump has also hinted at reclassification plans. Analysts say this would not legalize the drug outright, but it could reduce penalties, lower tax burdens, and make cannabis companies more competitive.
Industry leaders such as Canopy Growth welcomed the development, calling it a sign of progress for cannabis in healthcare and senior wellness. If reclassification moves forward, it could allow more cannabis firms to list on major U.S. exchanges, attract institutional investors, and narrow the gap between state and federal laws.
