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Cannabis stocks soared, with Canopy Growth gaining 21%, in anticipation of a U.S. executive order to reclassify marijuana to a lower-risk category.
Vision Marine Technologies Inc. (VMAR) stock skyrocketed 156.77% to close at $0.976 on December 16, driven by exceptionally high trading volume of over 225 million shares.
Leveraged ETFs, particularly those focused on the cannabis and space industries, saw significant gains driven by sector-specific speculative news. Reports of potential U.S. federal marijuana reclassification and key operational milestones for Rocket Lab fueled investor optimism in these high-growth, high-risk sectors.
Canopy Growth will acquire MTL Cannabis for an enterprise value of approximately $179 million, a strategic move to establish itself as Canada's top medical cannabis provider and accelerate its journey to profitability through significant cost savings and increased market presence.
The NYSE Health Care Index posted a marginal gain of 0.2% as a rally in cannabis-related stocks, fueled by potential U.S. policy shifts, offset significant negative news from traditional healthcare providers. Ardent Health, Inc. faces a securities investigation after revealing substantial financial adjustments.
Reports that the Trump administration plans to reclassify marijuana to a less-restrictive category triggered a significant rally in cannabis-related stocks. This policy shift, while not full legalization, could fundamentally alter the financial landscape for the industry by easing tax burdens and potentially opening access to mainstream banking services.
U.S. markets fell, led by a sharp decline in technology stocks after Broadcom's warning on profit margins sparked fears of an AI bubble. In a divergent trend, cannabis stocks experienced a significant rally following reports of potential federal reclassification by the U.S. government.