After a disappointing week, a 1000 point drop, which many experts described as “market correction”, cannabis stocks made a bounce back on Monday also saw the Evolve Marijuana ETF (TSX:SEED) launched amid positive fanfare in Toronto, Canada.
The stock bounce back comes on the heels of President Trump’s new budget announcement, which has given investors a bit of confidence after a rough start to 2018 in terms of market outlook in the United States.
The Dow Jones Industrial Average jumped 1.7 percent to close out the day at 24,601.27, while the Nasdaq and the S&P 500 showed impressive gains as well. The North American Marijuana Index jumped 1.46 points to end the day at 281.07, a 0.52% gain.
The Canadian market saw similar gains as well.
While some are referring to last week as “correction” some aren’t so willing to do the same.
“It’s too soon to tell if it’s a counter trend rally that’s sustainable” Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia said, according to Reuters.