Optimism Grows: Cannabis Stocks Surge as Trump Considers Rescheduling
Cannabis Stock Rally: Cannabis stocks surged following reports that President Trump may sign an executive order to reschedule marijuana from Schedule I to Schedule III, which could alleviate financial burdens for cannabis businesses.
Impact of Section 280E: The current tax code, specifically Section 280E, prevents cannabis businesses from deducting standard expenses, leading to high effective tax rates; rescheduling could lift this burden and enhance profitability.
Caution on Legalization: Experts warn that rescheduling to Schedule III does not equate to full legalization, as federal criminal penalties for recreational use would still apply, maintaining conflicts with state laws.
Market Activity: The cannabis sector experienced increased trading volumes and social media activity as investors awaited an official announcement, with notable stocks including Canopy Growth Corp and Tilray Brands trending.
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2026 Outlook: Restaurants, Cannabis, and Other Stock Trends to Watch
- Investment Outlook for 2026: Barron’s Investor Circle reporters are preparing to analyze the investment landscape as 2025 comes to a close.
- Focus on Future Trends: The emphasis is on identifying key trends and opportunities that may shape investment strategies in the upcoming year.
- Market Predictions: Insights and predictions regarding market movements and potential sectors for growth are being gathered.
- Strategic Planning: Investors are encouraged to consider these insights for strategic planning and decision-making for 2026.
Benzinga Market Update: Carnival, Caterpillar, Meta Among Stocks as Markets See Slight Increases
Market Performance: The stock market experienced moderate gains due to softer inflation data and stable unemployment, with the Dow Jones and S&P 500 rising, while the Nasdaq rebounded, indicating investor confidence in a potential rate cut by the Federal Reserve in 2026.
Earnings Highlights: Micron Technology exceeded expectations and raised its guidance, boosting AI-related semiconductor stocks, while Nike's cautious outlook on global demand, especially in China, led to a decline in its shares.
Sector Resilience: Transportation and travel sectors showed strength, with FedEx reporting solid quarterly results and Carnival Corporation reinstating its dividend and forecasting strong demand for 2026, despite ongoing macroeconomic uncertainties.
Investor Sentiment: Reports indicated a shift in focus from hype around AI to companies demonstrating clear profitability, with notable bearish sentiments surrounding stocks like Meta and Novo Nordisk, which faced challenges in their respective markets.
