Shares of U.S. and Canadian cannabis stocks continued their rally on Tuesday, after President Donald Trump a day earlier said he was “very strongly” weighing an executive order to reschedule the drug — a move that would lift some regulations on the substance.

Trump is expected to tell agencies to reclassify marijuana as a Schedule III drug, The Washington Post reported on Thursday. Such a move would allow cannabis companies to fall under different tax regulations and encourage investment, while placing pot in a class of drug that includes steroids and Tylenol with codeine.

President Donald Trump said Monday that the White House is “very strongly” considering signing an executive order to reschedule marijuana to a lower drug classification, which would ease federal restr...