Following reports that President Donald Trump is considering reclassifying marijuana as a less dangerous drug, cannabis company stocks surged in North America.

On Monday (11), shares of Canopy Growth Corp rose by 19.2%. Other major companies in the sector also experienced strong appreciation: Tilray (NASDAQ: TLRY) went up by 17.7%, Cronos Group (NASDAQ: CRON) grew by 14.3%, Aurora Cannabis (NASDAQ: ACB) saw an increase of 8.7%, and SNDL (NASDAQ: SNDL) gained 6.6%.

According to The Wall Street Journal, citing sources close to the matter, Trump showed interest in changing the federal classification of marijuana during a fundraising event at his golf club in Jersey, with tickets priced at $1 million per person. This move would reduce restrictions on the purchase and sale of cannabis products, potentially expanding the sector's profitability.

The potential change comes after cannabis companies contributed millions of dollars to political groups linked to the former president. Among those present at the event was Trulieve's CEO, Kim Rivers, who advocated for reclassification and the expansion of research on medical marijuana.

The Biden administration had started efforts to change the substance's classification but did not complete the process before leaving office. If confirmed, the reclassification will be a milestone for the industry, which still faces regulatory obstacles despite the increasing legalization at the state level.

The movements in the stock market reflect investors' optimism about federal reforms that could open new markets and reduce operational barriers for companies operating in different states.

With information from Investing.com