SAN FRANCISCO (AP) — Stocks related to marijuana are plummeting and cannabis boosters are fretting about the industry’s future after U.S. Attorney General Jeff Sessions signaled a tougher approach to federal pot enforcement.
The plunging stock prices Thursday reversed a weeks-long rally driven by optimism after California launched recreational sales of pot on Monday.
Several marijuana stocks saw double-digit declines in the hours after Sessions’ announcement, including the largest pot-producing company that is publicly traded.
A Nevada state lawmaker said he was concerned Sessions’ action could snuff out the budding industry in that state, which began recreational sales in July.
Meanwhile, some defiant growers and retailers vowed to push ahead with the fledgling industry.