April’s consumer price index increased 8.3% year-over-year, beating the 8.1% estimate. Though the rate is lower than 8.5% in the prior month, the higher-than-expected inflation is expected to push the Fed to tighten its monetary policy further. This raises concerns that the economy may slip into recession.
The uncertainties surrounding the economy and the stock market have dampened investor sentiment. Concerns over the broader equity market and persistent issues in the cannabis sector have driven a significant price decline by stocks in this space. Investors’ tepid interest in cannabis stocks is evident in the Global X Cannabis ETF’s (POTX) 30.3% decline over the past month. Earlier this month, Stifel analyst W. Andrew Carter confirmed his firm’s negative bias regarding the cannabis market.
