Wednesday morning brought a return to the bullish market environment that we saw throughout much of 2020. Many had predicted that stocks would sell off if it appeared that the Georgia runoff elections for the U.S. Senate would lead razor-thin Democratic control of Congress. However, after an initial drop, major benchmarks pushed substantially higher by midmorning. Just before 11 a.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 476 points to 30,868. The S&P 500 (SNPINDEX: ^GSPC) gained 42 points to 3,769, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) picked up 28 points to 12,847.
One unabashed winner in the aftermath of the Georgia elections was the cannabis stock sector. Even though marijuana companies have been able to find ways to operate in the state-by-state patchwork of legality they’ve found, many cannabis investors have hoped for a more unified approach to pot legalization that’s more clearly consistent with the concept of federalism and the Supremacy Clause of the U.S. Constitution. The odds of such an outcome may just have improved considerably.