Investing

Cannabis stocks surge as Biden administration moves to reclassify marijuana

In this article

Trade Roots, a Wareham-based Cannabis dispensary grows cannabis plants for making CBD with THC in their greenhouse, and manufactures CBD products for sale in their shop and distribution to buyers. 
John Tlumacki | Boston Globe | Getty Images

Cannabis stocks leapt on Tuesday afternoon, buoyed by a Biden administration decision to ease federal restrictions on marijuana.

The U.S. Drug Enforcement Administration is expected to approve an opinion by the Department of Health and Human Services to reclassify marijuana as a Schedule III substance, NBC News reported, citing four sources with knowledge of the decision.

For more than 50 years, marijuana has been labeled a Schedule I substance, the same category that drugs like methamphetamine and heroin fall into. Drugs in that category are defined as substances with “no currently accepted medical use and a high potential for abuse,” according to the DEA.

A move to Schedule III would place marijuana alongside Tylenol with codeine and anabolic steroids – that is, “drugs with a moderate to low potential for physical and psychological dependence.”

Investors in cannabis stocks cheered the move, with the AdvisorShares Pure US Cannabis ETF (MSOS) surging nearly 20% in afternoon trading. Amplify U.S. Alternative Harvest ETF (MJUS) jumped about 19%.

Stock Chart IconStock chart icon

hide content
MJUS performance 1-day

Individual marijuana stocks with small market capitalizations also rallied. Curaleaf Holdings surged 19% to touch a new 52-week high, while Trulieve Cannabis climbed nearly 30%.

Products You May Like

Articles You May Like

How financial advisors are factoring for emotions in money management
This ETF aims to capture China’s own ‘Magnificent Seven’
UAW challenges Mercedes-Benz union vote, asks NLRB for new election
Citi fined $79 million by British regulators over fat-finger trading and control errors
How IRMAA Can Increase Your Medicare Premiums In Retirement

Leave a Reply

Your email address will not be published. Required fields are marked *