Stocks rise as sports betting scandal and crypto pardon dominate the session. The S&P 500 climbed 0.6 percent as traders weighed headlines that hit both regulated gaming and crypto. Short term the market reacted to headline risk. Longer term the news recalibrates regulatory and operational prospects for major platforms. In the United States the indictment raises questions for sportsbooks that handled $150 billion in legal bets in 2024. In Europe the crypto pardon could ease pressure on exchanges that operate across jurisdictions. In Asia and emerging markets the developments will affect capital flows into fintech and gaming ventures. The moves echo prior episodes when regulation and legal actions accelerated sector rotations.

Market close and tech momentum

Equity markets finished the day with modest gains led by select technology plays. The S&P 500 rose 0.6 percent as risk appetite returned after an early wobble. A group of quantum computing stocks outperformed the broader market. Several names jumped on reports that the U.S. government is discussing equity stakes in exchange for federal funding. D-Wave Quantum (NYSE:QBTS) surged about 13.8 percent on those reports. The burst in quantum shares reflected renewed investor interest in next generation computing and in potential public backing for capital intensive research.

The move in quantum names stands in contrast to parts of the market that are trading on legislative and legal headlines. Traders said the market favored companies with clear catalysts. Meanwhile, big-cap technology and cloud players held steady as investors digested product announcements and regulatory updates that could affect revenue mixes over time.

Sports betting indictment rattles a fast-growing industry

A new federal indictment tied to the NBA has thrown a spotlight on sports betting controls and data confidentiality. Miami Heat player Terry Rozier was arrested on charges alleging he leaked confidential health information that associates used to bet on his performance. Former player and coach Damon Jones was accused of selling health details on Lakers players while in an unofficial role. Those allegations revive issues that first surfaced last year in a related case that led one former player to plead guilty to wire fraud.

The legal action matters now because regulated sportsbooks increasingly rely on trust and data integrity to keep bettors on regulated platforms. Americans legally wagered roughly $150 billion on sports in 2024. That volume helped the industry produce nearly 25 percent higher revenue year over year. Regulated markets now exist in 38 states plus Washington, D.C., and Puerto Rico. Prosecutors characterized the case as one of the most brazen corruption schemes since wide legalization began. They also called major sportsbooks victims in the scheme because regulated operators reportedly lost money when illicit inside information skewed outcomes.

Market reaction was mixed. DraftKings (NASDAQ:DKNG) closed flat. FanDuel parent Flutter Entertainment (LSE:FLTR) edged down 0.4 percent. MGM Resorts (NYSE:MGM), which owns half of BetMGM, finished up 1.2 percent. The sector will face heightened regulatory and compliance scrutiny. In the short term investors will watch litigation timelines and any policy responses that could change how leagues and sportsbooks share data. Over the longer term the scale of legal betting and the economics of regulated platforms will likely continue to attract capital if integrity measures hold up.

Crypto pardon shifts regulatory calculus for exchanges

President Trump granted a pardon to Changpeng Zhao, known as CZ, the founder of Binance. The White House confirmed the action and framed it as an exercise of constitutional authority. CZ had previously pleaded guilty to a count involving the Bank Secrecy Act and was sentenced to four months in prison. The pardon arrives after sustained lobbying by Binance and comes at a moment when U.S. policy position on crypto is a decisive factor for exchange access to American markets.

Short term the pardon could ease legal and operational barriers for Binance to pursue a path back into the U.S. market. That matters for liquidity and product availability because Binance has been the largest global crypto exchange in volume. For Europe and Asia the pardon will be judged differently. Regulators in other jurisdictions often follow U.S. enforcement trends but retain local priorities for investor protection and anti-money laundering controls. Emerging markets that host significant crypto activity will track the development for potential policy and capital flow implications.

Commentary from the White House highlighted disagreement with prior enforcement choices. The move will not erase past compliance failures. It does, however, alter the immediate regulatory calculus and will prompt industry participants to reassess engagement strategies with U.S. authorities and global regulators.

Retail, auto and AI updates that shaped trading

Several corporate developments added to the day’s flow. Amazon (NASDAQ:AMZN) rolled out a new shopping feature called Help Me Decide that uses large language models and cloud services to recommend a primary product plus upgrade and budget options. The product push underscores Amazon’s effort to bring generative AI directly to consumer experiences and to extend monetization opportunities tied to shopping behavior.

Union activity and corporate cost cutting influenced specific names. Starbucks (NASDAQ:SBUX) unionized workers prepare to vote on strike authorization after contract talks stalled. Rivian (NASDAQ:RIVN) is trimming about 4 percent of its workforce as demand for electric vehicles shows signs of moderation. Target (NYSE:TGT) is eliminating roughly 1,000 corporate roles and shelving another 800 open positions. Tractor Supply (NASDAQ:TSCO) shares declined after the company flagged tariff and demand pressures. These discrete stories reinforce a broader theme that earnings, hiring decisions and consumer demand continue to drive micro moves within the market.

Today’s session demonstrated how fast-moving legal and regulatory headlines can redirect capital across sectors. Short term traders focus on headline risk and sector rotation. Over time the market will price structural outcomes around data integrity in sports betting, regulatory clarity for crypto exchanges and product innovation in retail tech. For market participants the immediate task is to monitor legal proceedings and policy responses that will shape revenue flows for affected companies.