Canopy Growth Corp.’s stock CGC fell about 14% on Tuesday after it more than doubled in the two previous days. The stock had briefly moved higher earlier in the day before dropping down into the red, as most cannabis stock cooled off after recent gains. The AdvisorShares Pure US Cannabis ETF MSOS fell 5%, Curaleaf Holdings Inc. CURLF dropped 1.3%, Trulieve Cannabis Corp. TCNNF fell 3.5% and Green Thumb Industries Inc. GTBIF fell 5.9%. The AXS Cannabis ETF THCX dropped 2.8%, and Tilray Brands Inc. TLRY dropped 10%. Optimism around a potential re-scheduling of cannabis rose last week after the U.S. Department of Health and Human Services recommended a Schedule III classification for cannabis under federal law. However, on Tuesday, 14 Republican members of Congress wrote a letter to the Drug Enforcement Administration (DEA) recommending against re-scheduling and keeping marijuana’s Schedule I status, which is the most restrictive category under the U.S. Controlled Substances Act (CSA), as initially reported by Marijuana Moment.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.