U.S. and Canadian cannabis equities posted significant gains on Tuesday following President Donald Trump’s statement that he is 'very strongly' considering an executive order to reschedule marijuana. The rally reflects growing market optimism over potential federal regulatory changes.
- Canopy Growth Corp. (WEED) gained 14.8% on Tuesday
- Tilray Brands (TLRY) rose 12.3% following Trump's statement
- Aurora Cannabis (ACB) increased 11.6% in U.S. trading
- Cronos Group (CRON) climbed 9.7% as rescheduling talk persists
- U.S. cannabis market projected to hit $42 billion by 2027
- Horizons Marijuana Life Sciences ETF (HMLSF) saw 13.2% NAV increase over two days
Cannabis-related stocks across North America advanced sharply on Tuesday, with major index components showing double-digit percentage gains. Canopy Growth Corp. (TSX: WEED) rose 14.8%, while Tilray Brands Inc. (NASDAQ: TLRY) jumped 12.3%, both reaching their highest levels in over a year. In the U.S., Aurora Cannabis Inc. (NYSE: ACB) climbed 11.6%, and Cronos Group Inc. (TSX: CRON) gained 9.7% as traders priced in potential easing of federal restrictions. The momentum followed a public statement from President Donald Trump on Monday, in which he declared he was 'very strongly' evaluating an executive order to reclassify cannabis from a Schedule I to a Schedule II controlled substance under the Controlled Substances Act. Such a move would acknowledge the drug’s medical potential and could pave the way for broader research, banking access, and state-level regulatory alignment. Market analysts note that rescheduling could unlock billions in investment and reduce legal uncertainty for operators. According to recent filings, the U.S. cannabis market is projected to reach $42 billion in annual revenue by 2027, up from $25 billion in 2024. The potential shift in federal stance has already drawn increased institutional interest and renewed M&A speculation in the sector. Investors, particularly in exchange-traded funds focused on cannabis such as the Horizons Marijuana Life Sciences ETF (TSX: HMLSF), have responded quickly. The fund’s net asset value rose 13.2% over two days, reflecting heightened sentiment. The broader S&P 500 Cannabis Index (SPCANN) posted its best performance since April 2024, closing up 8.9%.