Trump’s CBD Endorsement for Medicare Sparks Rally in Cannabis Equities

LOS ANGELES – Shares in Cannabis companies climbed more than 20% on Monday, propelled by President Donald Trump’s weekend social media post backing the inclusion of cannabidiol in Medicare coverage for older Americans. The AdvisorShares Pure US Cannabis ETF (MSOS), a bellwether for the sector with assets approaching $750 million, led the advance, posting a 22% gain in early trading and testing levels not seen since mid-summer.

Trump, who reposted a video on Truth Social late Sunday highlighting the human endocannabinoid system (ECS) and CBD‘s potential in managing age-related ailments like chronic pain and inflammation, described the compound as a “game-changer” for seniors on fixed incomes. The clip, produced by a conservative health advocacy group, argued that hemp-derived CBD [legal under federal law] could cut costs for taxpayers by reducing reliance on pricier pharmaceuticals. While the president offered no new policy details, the endorsement arrived as the administration weighs broader Cannabis reforms, including a possible shift in its classification from Schedule I to Schedule III.

The market reaction was swift and broad-based. Beyond MSOS, Canopy Growth and Tilray Brands both leaped nearly 20%, Curaleaf Holdings rose 18%, Green Thumb Industries added 15%, and Trulieve Cannabis gained 19%. Volume spiked threefold over the 30-day average, signaling fresh institutional interest in a sector that has traded sideways for much of the year amid regulatory uncertainty.

The jump aligns with patterns seen in his prior political signals. Here, the CBD focus [narrower than full legalization] taps into bipartisan appeal, given surveys showing 70% of voters over 65 favor medical alternatives to opioids.

Yet the enthusiasm warrants caution. Executive posts, while influential, carry limited weight without backing from the Department of Health and Human Services or lawmakers. A Reuters review of similar endorsements found that only 40% translated to tangible fiscal changes within six months, often diluted by budget constraints. Investors eyeing MSOS, now up 65% quarter-to-date, might view this as confirmation of a policy thaw, but volatility remains high – beta coefficients for cannabis ETFs hover at 1.8, double the S&P 500’s.

For the cannabis industry, Trump’s intervention highlights how Washington rhetoric can reshape capital flows overnight, even as substantive progress demands cross-aisle compromise. With midterm elections approaching, operators from Florida to California will parse every utterance for clues on federal relief. Until then, the sector’s path stays tied to these bursts of optimism, and the follow-through that follows.