Cannabis companies were among notable underperformers on Thursday, as Wall Street was awaiting an executive order from President Donald Trump that would classify marijuana as a less dangerous drug.
U.S. multi-state operators such as Curaleaf Holdings (CURLF), Ascend Wellness (AAWH), Cresco Labs (CRLBF), Trulieve Cannabis (TCNNF), Green Thumb Industries (GTBIF), Jushi Holdings (JUSHF), and Verano Holdings (VRNO) all posted double-digit percentage declines.
AdvisorShares Pure US Cannabis ETF (MSOS), which represents U.S. multi-state operators, and Amplify Seymour Cannabis ETF (CNBS) slipped ~12% each, leading other underperformers Amplify Alternative Harvest ETF (MJ) and AdvisorShares Pure Cannabis ETF (YOLO).
Canadian Licensed Producers, Canopy Growth (CGC), Tilray (TLRY), Cronos (CRON), Aurora Cannabis (ACB), SNDL Inc. (SNDL), and OrganiGram Holdings (OGI) are among the outperformers.
Citing a White House official, cannabis publication Marijuana Moment reported Trump’s order will direct the U.S. attorney general to “expedite” and “complete” the marijuana rescheduling process, which will categorize cannabis as a drug with medical value and a lower abuse potential.
In the Controlled Substances Act, cannabis is currently classified under Schedule I, which includes drugs such as LSD and heroin, and Trump’s order will move it to Schedule III, where it will be grouped alongside medically important therapies such as ketamine.