While President Donald Trump vowed on his campaign trail to let states decide the fate of marijuana legalization, recent comments by the Trump Administration seem to negate his campaign promise and have created a ripple effect in the public cannabis markets.
On Thursday, Feb. 23, 2017, White House Press Secretary Sean Spicer indicated during a daily press briefing that there would be “greater enforcement” of federal marijuana laws; accordingly, the U.S. Marijuana Index dropped from 80.23 on Wednesday’s closing to 76.61 by Thursday’s closing. It seems some market participants may have had a delayed reaction to Spicer’s comments as the downward trend continued on Friday, dropping an additional 5% to close last week at 72.80.
The Trump Administration made additional comments this week regarding federal marijuana enforcement, with Attorney General addressing his stance on marijuana to both the press and to the National Association of Attorneys General. These comments clarified Spicer’s initial statement last week, so the market reaction was less extreme, with the U.S. Marijuana Index down 1.5% today.
In total, the U.S. Marijuana Index is down 10.1% since Feb. 23 when Spicer made the first comment to reveal the Trump Administration’s position on state-legal marijuana.