Cannabis stocks surged Friday in the wake of reports that President Trump is preparing to reclassify marijuana under federal law — a long-awaited shift that investors say could loosen restrictions and revive a battered industry.
Traders piled into pot firms on expectations that Trump will move cannabis from Schedule I to Schedule III under the Controlled Substances Act, a step that would treat marijuana as less dangerous and acknowledge it as acceptable for medical use.
The rally marked one of the biggest single-day moves for cannabis stocks in years, snapping a prolonged slump that has left much of the sector trading at a fraction of its 2021 highs.
Tilray Brands led the charge among major names, jumping sharply as heavy volume poured in. The Canadian cannabis producer was trading at $11.85 — up $3.42, or more than 40% — late Friday afternoon.
Even after Friday’s spike, Tilray remains well below its 52-week high of $23.20.
Canopy Growth was up roughly 50% on the day to around $1.70 a share as trading volume topped 117 million shares, far above recent averages.
Curaleaf rose 38% to trade at $3.71 per share. Aurora Cannabis climbed nearly 18% to about $5.35 per share.
The AdvisorShares Pure US Cannabis ETF, a widely watched barometer for the domestic industry, jumped more than 50% to around $5.71, approaching its 52-week high of $6.02 after languishing near $2 earlier this year.
Federal law currently classifies marijuana as a Schedule I drug — a restrictive category that places cannabis alongside substances such as heroin and LSD.
Reclassifying cannabis as a Schedule III drug would stop short of full federal legalization, but the step would significantly ease federal barriers that have weighed on cannabis companies for years.
Schedule III status would likely make medical research easier, allow cannabis businesses to deduct ordinary expenses by easing tax restrictions, and improve access to banking and institutional capital — all key pressure points for the industry.
Trump campaigned on unlocking the medical uses of marijuana and pledged to push for rescheduling during his second term. Investors interpreted the latest reports as a sign the administration is now preparing to follow through.
In recent years, cannabis stocks have been beset by steep declines driven by regulatory uncertainty, oversupply, weak pricing, and limited access to traditional financing.
Despite Friday’s bonanza, broad cannabis indices are still down more than 90% from their pandemic-era peaks.
Any rescheduling would still require a rulemaking process involving agencies such as the Drug Enforcement Administration.
A White House official told The Post that no final decisions have been made. The official declined to comment further on the matter.
Advocates see Schedule III as a major milestone but only a partial victory. Full federal legalization, interstate commerce, and sweeping criminal justice reforms would still require congressional action.
For investors, the sustainability of the rally hinges on whether Trump follows through with a formal order and how quickly regulators move to implement changes.
Until then, cannabis stocks remain highly volatile, prone to sharp swings on headlines after years of false starts and dashed hopes tied to Washington.
Friday’s surge, however, marked a rare moment of broad optimism for an industry that has spent much of the past three years in retreat.
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