Cannabis Stocks Fell despite Biden’s Support of Legalization

A weak start

The overall cannabis sector was off to a weak start this week. The weakness was reflected in the Horizons Marijuana Life Sciences ETF (HMMJ), which sank by nearly 1.4%, and the ETFMG Alternative Harvest ETF (MJ), which fell 1.1% in the first half of the day on Monday.

Cannabis Stocks Fell despite Biden’s Support of Legalization

Worst performers

While most of the cannabis stocks were trading in the negative territory, the worst performers included KushCo Holdings (KSHB), which was trading lower by about 4% around 12:00 PM EST. Two other US-based stocks, Innovative Industrial Properties (IIPR) and Green Thumb Industries (GTBIF) were also in the bottom with a decline of about 3.5% and 1.4%, respectively.

Just last week, presidential candidate Joe Biden showed his support for marijuana legalization, which brought some hope to the cannabis sector in the US. His support was a big shift from his prior stance. Joe Biden had long opposed marijuana legalization. At a recent opioid epidemic forum, Joe Biden appeared to support the anti-marijuana camp.

Some of the other worst performers in the sector included Canopy Growth (WEED), which was trading lower by nearly 1.9%, and Aurora Cannabis (ACB), which was down about 2.1% as of noon.