SNDL Stock Forecast: Sundial Growers rises after another state legalizes cannabis

NASDAQ: SNDL gained 2.04% during Wednesday’s trading session.
The Governor of Rhode Island signed legislation to legalize cannabis in the state.
Some analysts believe Sundial could continue to grow through acquisitions.

Stocks Reporter FXStreet

NASDAQ: SNDL managed to reverse its weekly downtrend on Wednesday after the cannabis industry received a positive bit of news. Shares of SNDL added 2.04% and closed the trading session at $0.39. The markets were mostly unchanged as investors awaited the May meeting minutes from the FOMC. Sure enough, the Fed is seeking another half basis point rise in interest rates in June, which is in line with its attempted crackdown on inflation in the US economy. Following the news, the Dow Jones added 191 basis points, the S&P 500 gained 0.95%, and the NASDAQ jumped higher by 1.51% during the session.

Stay up to speed with hot stocks' news!

The major news that was moving cannabis related stocks on Wednesday was the signing of new legislation in the State of Rhode Island. Democratic Governor Dan McKee officially legalized recreational cannabis in the state, making it the 19th in the US to legalize marijuana. The legislation will allow citizens that are 21 years of age or older to partake in cannabis usage. The news comes on the heels of nearby state New Jersey, which officially legalized cannabis in April of this year. It is unclear if this will have any impact on the vote to federally legalize cannabis via the More Act when it reaches the Senate.

Sundial stock price

Some analysts in the cannabis industry believe Sundial could seek further mergers and acquisitions given its ample cash position. The company is just coming off finalizing its acquisition of Canadian liquor distributor, Alcanna, and could seek further consolidation of the Canadian cannabis industry.

Like this article? Help us with some feedback by answering this survey:

Author

Stocks Reporter

FXStreet

AUD/USD reclaims 0.7100 and above

AUD/USD regains the smile, reversing three consecutive daily pullbacks and returning to the area beyond 0.7100 the figure following the Wall St close on Thursday. That said, the softer tone in the US Dollar lends support to the pair’s recovery at the time when market participants continue to digest Wednesday’s hawkish message by the Fed.

USD/JPY looks slightly offered near 156.00 ahead of BoJ

USD/JPY trades with decent losses in the 156.00 region ahead of the opening bell in Asia. Indeed, the pair has faded part of the recent three-day positive streak, faltering just ahead of the 156.50 level. Meanwhile, all the attention is expected to be on the BoJ early on Friday, with investors largely anticipating a 25-bps rate hike.

Gold: Upside appears capped by $4,400

Gold climbs sharply and clinches fresh weekly peaks on Thursday, although the bull run seems to have met some initial hurdle around the $4,400 zone per troy ounce. The yellow metal’s rebound reverses three daily declines in a row and follows the modest retracement in the US Dollar as well as another negative performance of crude oil prices.

Zcash Price Forecast: ZEC eyes $1,500 breakout as retail demand expands

Zcash (ZEC) rises sharply above $1,400 on Thursday as the privacy-focused token defies the broader cryptocurrency market's doldrums this week, driven primarily by macro uncertainty and regulatory headwinds. ZEC’s bullish outlook, though seemingly overextended, remains stable, supported by growing retail demand reflected in the derivatives market.

One hike down, more to come? The Fed’s new rate path says yes

The Federal Reserve (Fed) raised its Fed Fund Target Range (FFTR) range by 25 basis points to 3.75%-4.00% in a unanimous decision, saying the move would support a timelier return to its 2% inflation goal.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.