- 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.
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:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD trades with mild positive bias near 0.6700, RBA Meeting Minutes eyed
The AUD/USD trades with a mild positive bias near 0.6695 during the early Asian session on Monday. The weaker US Dollar provides some support to the pair. The Fed’s Bostic, Barr, Waller, Jefferson, and Mester are set to speak on Monday.
EUR/USD: Could FOMC Minutes provide fresh clues?
The EUR/USD pair advanced for a fourth consecutive week, comfortably trading around 1.0860 ahead of the close. Progress had been shallow, as the pair is up roughly 250 pips from the year low of 1.0600 posted mid-April.
Gold looks to extend uptrend once it confirms $2,400 as support
Gold price continued to push higher last week and rose above $2,400 on Friday, gaining nearly 2% for the week. Investors will continue to scrutinize comments from Fed officials this week and look for fresh hints on the timing of the policy pivot in the minutes of the April 30-May 1 meeting.
AI tokens could really ahead of Nvidia earnings
Native cryptocurrencies of several blockchain projects using Artificial Intelligence could register gains in the coming week as the market prepares for NVIDIA earnings report.
Week ahead: Flash PMIs, UK and Japan CPIs in focus. RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.