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The Highlights

Global equities were mixed last week, with the MSCI World Index declining 0.61% and the S&P 500 gaining 0.46%. The S&P 500 is now 20.56% above its October 12 low, which technically means a new bull market is underway. Good enough earnings and the potential for the Fed to stop hiking rates have fueled the rally. Small caps were the strongest component last week, with the Russell 2000 advancing 1.65%. The NASDAQ inched up 0.14%, marking its seventh straight weekly gain. Positive political news drove cannabis stocks higher. US cannabis stocks, as represented by the MSOS ETF, were up 3.54%. California operator Glass House Brands (NEO: GLAS.AU, OTCQX: GLASF) jumped 13.90%. While California continues to be a tough market, Glass House is benefiting from the increase in wholesale flower prices. Ascend Wellness (CSE: AAWH, OTCQX: AAWH) fell 11.91% and is now down 39.14% YTD. Senate Banking Committee May Soon Hold SAFE Vote According to Bloomberg Law, the Senate Banking Committee is expecting to address SAFE Banking before the July 4 recess. SAFE Banking was reintroduced in the Senate and House in early April and the Senate Banking Committee held a hearing on SAFE on May 11. Senate Banking Committee Chairman Sherrod Brown stated, “We’re looking at markup on the fentanyl issue, the executive compensation issue, and the Safe Banking Act issue and we want to do all that in the next two or three weeks.” If it gets enough votes in Committee, it would then be sent to a floor vote in the Senate. This may all take place before the Senate begins recess starts on July 31. While this is welcome progress, there are still significant hurdles ahead. Senator Chuck Schumer may attempt to add amendments like the HOPE Act or GRAM Act, which may make the bill harder to pass. If SAFE does pass in the Senate, the House is now controlled by Republicans, and this could present challenges. Any incremental steps should continue to push cannabis stocks higher, but the reaction continues to be more muted than in the past.