Weed stocks are getting slammed as worries surface that the new attorney general could be against legal marijuana

Ethel Jiang

Nov 8, 2018, 22:55 IST

Weed stocks are getting slammed as worries surface that the new attorney general could be against legal marijuana

Canopy Growth

Former Attorney General Jeff Sessions, a staunch opponent of legal weed, resigned on Wednesday.
President Donald Trump is reportedly considering other marijuana opponents to fill in the position.
Weed stocks rallied on Wednesday after Sessions resignation, but got hit on Thursday as Sessions departure optimism wanes.
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Weed stocks were sliding from their post-election peaks Thursday as worries surfaced that the successor to former Attorney General Jeff Sessions could also be against legal marijuana.

Pot stocks rallied on Wednesday, with Tilray surging more than 30%, after Michigan became the 10th US state to legalize marijuana and as Jeff Sessions, a long-term opponent of legal weed, resigned as the US's attorney general. In January, Sessions rescinded an Obama-era policy directing states to make their own decisions on cannabis without federal.

While Sessions' resignation has brought optimism for legal-marijuana advocates, Trump is reportedly considering other opponents to replace him.

"There is a risk that Trump will nominate a new Attorney General who is anti-cannabis," Cowen analyst Jaret Seiberg wrote in a note. "It is why we continue to see legislation as the path forward for medical use, veteran access, and banking services."

CBS reported that the president is considering former New Jersey Gov. Chris Christie, who is also opposed to legalizing marijuana, to fill the position.

The Wall Street Journal says that Health and Human Services Secretary Alex Azar, outgoing Florida Attorney General Pam Bondi, and Trump lawyer Rudy Giuliani are also on the list.

In March, Azar came out against using cannabis for medical purposes, saying there's "no such thing as medical marijuana." And in August, Bondi filed a 57-page document supporting Florida's ban on smokable medical marijuana. Similarly, Giuliani has said marijuana "can deteriorate your brain."

As a result, cannabis stocks are getting hit across the board: Here's the scoreboard at 12:19 p.m. ET: