CNBS Overview

Market Performance: Last week, the S&P 500 fell by 0.6%, while the Dow Jones rose by 1.1% and the Nasdaq dropped by 1.6%, primarily due to declines in tech stocks, including a 14% drop in Oracle's shares.

Federal Reserve Actions: The Fed implemented its final rate cut of the year, lowering the benchmark federal funds rate to 3.5%-3.75%, with projections indicating a more restrained outlook for 2026.

ETF Highlights: Notable ETF performances included significant gains in the cannabis sector, with the Roundhill Cannabis ETF up 51.2%, and strong performances in silver miners and the space economy, driven by rising demand and investor interest.

Emerging Trends: The Roundhill GLP-1 & Weight Loss ETF gained 6.3%, reflecting optimism in weight loss drugs as a major advancement in pharmaceuticals, while platinum prices surged due to anticipated market deficits.

Market Reaction to Trump's Comments: Despite President Trump's indication of considering an executive order to reclassify marijuana, pot stocks, including the Amplify Seymour Cannabis ETF, experienced a decline, with the ETF down nearly 7% after a significant surge on Friday.

Potential Reclassification Impact: Trump suggested that reclassifying marijuana from a Schedule I to a Schedule III substance could facilitate more research and attract investment, with industry insiders expressing increased optimism about the potential for this change.

Historical Context: The discussion around marijuana reclassification is not new, as Trump had previously mentioned the possibility in August, and the recent comments have reignited hopes for a shift that could benefit the cannabis industry.

Stock Performance of Major Producers: Major cannabis producers like Tilray and Canopy Growth saw their stock prices drop significantly, with Tilray down 10% and Canopy Growth down 4.6%, while retailer SNDL fell over 13% in Monday's trading session.

Cannabis Stock Surge: On December 12, 2025, cannabis stocks experienced a significant surge, with the Amplify Seymour Cannabis ETF rising over 54% due to reports of President Trump's plans to reclassify marijuana from Schedule I to Schedule III, which could ease federal regulations and encourage investment.

Potential Reclassification Impact: The reclassification would allow cannabis companies to benefit from different tax regulations and potentially increase pharmaceutical acceptance, although uncertainties remain regarding the final policy confirmation.

Market Reactions: Other cannabis ETFs also saw substantial gains on the same day, including Roundhill Cannabis ETF (up 55.7%) and Advisorshares Pure US Cannabis ETF (up 54.3%), reflecting heightened investor optimism in the sector.

Long-term Industry Outlook: Despite recent gains, the cannabis industry has faced challenges, with stocks like Tilray down significantly over the past five years; however, the current political climate under Trump's second term appears to be more favorable for the industry.

Surge in Cannabis Stocks: Cannabis stocks, particularly Tilray Brands and Canopy Growth, experienced a significant increase following news of potential federal restrictions on marijuana being loosened.

Market Reaction: The enthusiasm in the market may have been overly optimistic regarding the implications of President Donald Trump's potential policy changes on cannabis.

Cannabis Stocks Surge: Tilray Brands and Canopy Growth experienced a significant increase in stock prices.

Federal Policy Change: The surge was attributed to reports that President Donald Trump plans to ease federal restrictions on marijuana.

Cannabis Stock Surge: Cannabis stocks experienced a significant increase, with Tilray Brands rising over 33% and Canopy Growth jumping 23% following reports of potential federal easing on marijuana restrictions by President Trump.

Reclassification of Marijuana: Trump is expected to instruct agencies to reclassify marijuana as a Schedule III drug, which would change its legal status and potentially attract more investment in the cannabis industry.

Impact on Industry Regulations: The reclassification could allow banks to service cannabis companies and enable states to regulate marijuana more effectively, according to analysts.

Market Performance Context: Despite the recent surge, cannabis stocks have struggled overall, with Tilray down 36% for the year prior to the recent jump, and the Amplify Cannabis ETF projected to lose over 8% in 2025, marking its fifth consecutive negative year.