Cannabis stocks continued to slide on Friday as the marijuana markets hit full-blown panic-mode despite the industry’s best efforts to assuage investor fears over a U.S. policy shift that declared open-season on states that legalized the plant. Canadian stocks once thought to be a benefactor of tightening U.S. rules also took another substantial hit on Friday as uncertainty in the U.S. market infected the broader industry. Another record day on Wall Street and Canada’s top stock exchange exposed the panic ensuing in the marijuana markets, as cannabis stocks drifted farther away from the gains of the general markets for the third day in a row.
Lawmakers on Friday signed onto a spending bill proposal that would protect states where marijuana is legal, but it was too late to affect the markets in any real sense. Meanwhile Wall Street posted another day of record gains, with the start of the fourth-quarter earning season bringing in strong results leading to investor optimism about economic growth. The Dow Jones Industrial Average jumped .89 percent to close the day at 25,803.19, with the Nasdaq and the S&P 500 posting similar gains. In Canada, the S&P/TSX Index rose .13 percent, with considerable increases in the gold and materials sectors.
Friday’s losses made it harder for investors to explain away the crumbling cannabis economy as due to outside factors such as recent rumors about NAFTA. The “Sessions Panic” is in full effect, with MJIC’s North American Marijuana Index the benchmark for the industry’s issues. The Index fell 21.55 points on Friday, a 6.58 percent drop, to close at 306.03. News on both sides of the U.S.-Canadian border was atrocious for investors, with the former index falling 1.8 percent and the latter 9.5 percent.
Marijuana’s other two significant indices fared no better on Friday, as investors