Cannabis stocks lost early gains on Thursday, and continued their fall into Friday as marijuana markets fell on some investor fears of coming inflation turning into a full-on panic. Even though the Fed held rates steady on Wednesday following their two-day meeting, they warned of inflation concerns. Meanwhile rising bond yields and falling tech stocks sent Wall Street into a tailspin one day before the week’s end and the Dow Jones is down more than 1% at the time of this writing.
This correction, some argue, is occurring in the marijuana markets themselves and unrelated to any activity on Wall Street or the Canadian exchanges.
Across the board, cannabis companies lost big on Thursday. Canopy Growth Corp. (TSX:WEED) dropped 11.19 percent to $27.55 per share while number two Canadian rival Aurora Cannabis Inc. (TSX:ACB) fell 12.65 percent. Aphria Inc.(TSX:APH) dropped 12.39 percent as well on Thursday, although the hardest fall was felt by Namaste Technologies Inc. (CSN:N) who lost 21.71 percent.
On Thursday, the MJIC’s North American Marijuana Index fell 33.67 points, or 10.53 percent to close the day at 286.01.