Trump had said last month his administration was looking to reclassify marijuana, which could also result in potentially easing criminal penalties around its use.

Hemp-derived cannabidiol (CBD) could “revolutionize senior healthcare” by helping reduce disease progression and was shown as an alternative to prescription drugs, he said in a post on Truth Social on Sunday.

U.S.-listed shares of Canopy Growth gained 18.3 percent and Tilray Brands jumped 42 percent, while Cronos Group added 15.5 percent and Aurora Cannabis gained 25.4 percent.

Exchange-traded funds by AdvisorShares surged 21.8 percent and Roundhill gained 21.6 percent and are both on track for their biggest quarterly gains on record of more than 70 percent each.

“MSOS, the largest U.S. marijuana-focused ETF, is… benefiting from President Trump’s surprise Sunday support for the potential benefits of CBD, with any support going a long way for this beleaguered listed sector,” said Ben Laidler, head of equity strategy at Bradesco BBI.

Regulations around the commercial use of hemp and CBD were significantly eased through the enactment of the Agriculture Improvement Act during Trump’s first term.

However, marijuana remains listed as a Schedule I substance, under the Controlled Substances Act, meaning it has a high potential for abuse and no current accepted medical use.

Former President Joe Biden had directed the Department of Health and Human Services to review marijuana’s status, leading the agency to recommend moving it to Schedule III, a category for drugs with moderate to low potential for dependence.

Trump “already hinted that they were planning to reclassify it. This doesn’t mean it’s legalizing the drug, but it does reduce some of the burden on the companies,” said Daniela Hathorn, senior market analyst at Capital.com.

“I do think there is further room for these stocks to move higher if it’s confirmed that the reclassification is happening.”

Weed stocks have reflected the ebb and flow of the prolonged process taken by each U.S. administration toward wider legalization of marijuana and are often volatile.

Some stocks, such as Canopy Growth have lost nearly half their value this year, while Cronos and SNDL have both gained more than 50 percent each, considering Monday’s gains.

“We’re encouraged by the U.S. administration’s recognition of cannabis and its potential role in supporting health and wellness for seniors,” a spokesperson for Ontario-based Canopy Growth said.

“Canopy Growth is excited about this momentum, and through our U.S. holdings in Canopy USA, we’re ready to participate meaningfully as the path forward becomes clear.”

Reclassification would remove the tax burden under Section 280E, which denies standard business deductions to cannabis companies. If the tax barrier is resolved, it could pave the way for more cannabis companies to list on U.S. stock exchanges and attract interest from institutional investors.

Reclassifying marijuana also represents a first step toward narrowing the chasm between state and federal cannabis laws. The drug is legal in some form in nearly 40 states.

By Johann M Cherian.

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