Stock Market Today, Dec. 16: Tilray Brands Surges 27.5% After Trump Signals Possible Marijuana Reclassification

Tilray Brands (NASDAQ:TLRY), global medical cannabis producer, closed Tuesday’s session at $13.94, up 27.54%. Trading volume reached 46.8 million shares, about 525% above its three-month average of 8.9 million shares.

How the markets moved today

Tuesday’s move tracked a sector-wide cannabis rally after President Donald Trump signaled he is considering an executive order to reclassify marijuana. Investors are watching potential U.S. policy changes that could meaningfully impact industry growth. The S&P 500 (SNPINDEX:^GSPC) slipped 0.26% to 6,799, while the Nasdaq Composite (NASDAQINDEX:^IXIC) added 0.23% to finish at 23,111.

Within the sector, cannabis-focused peers Canopy Growth (NASDAQ:CGC) and Cronos Group (NASDAQ:CRON) rose 10.24% and 3.61%, underscoring how U.S. rescheduling speculation is lifting the group.

What this means for investors

Today's jump has Tilray shares approaching a two-month high. Investors are betting that President Trump's comment that he is "strongly" considering reclassifying marijuana from a Schedule I to a Schedule III drug has investors pouring into cannabis names.

An executive order to reclassify the drug to the level of other drugs including Tylenol with Codeine and steroids would increase Tilray's addressable market. It could allow for medical use under federal law for the first time, for example. It's not the first time the potential for reclassification has come up, though. Investors today seem to believe that this is the time for the official change.

Howard Smith has positions in Tilray Brands. The Motley Fool has positions in and recommends Cronos Group. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.