/Weed stocks are rallying after Michigan legalizes marijuana for recreational use

Weed stocks are rallying after Michigan legalizes marijuana for recreational use

A woman holds marijuana for sale at the MedMen store in West Hollywood. REUTERS/Lucy NicholsonThomson Reuters

Weed stocks were gaining ground early Wednesday after Michigan became the 10th US state to legalize marijuana for recreational use. Voters rejected a similar measure in North Dakota, while the legalization for medical use passed in both Utah and Missouri.

Following the results, cannabis producers were rising across the board. Here’s a look at the premarket scoreboard at 7:15 a.m. ET on Wednesday:

Cannabis stocks have captured the attention of both Main Street and Wall Street this year. In August, Constellation Brands, the maker of Corona beer and Svedka vodka, announced a $4 billion investment in Canopy Growth. That led to a “green rush” into the sector, with market values of the biggest names more than doubling.

Last month, Canada became the second country to legalize marijuana for recreational use, putting a top in shares. But the future remains bright for the sector.

“We believe that the legalization in Canada offers a road map to invest in the companies that will form the basis of the legal cannabis industry in the coming years,” Jon Trauben, a managing partner at the cannabis-focused Altitude Investment Management, said.