What happened 

Shares of casino operator MGM Resorts (MGM 2.03%) jumped as much as 5.7% in morning trading on Wednesday as investors pushed gambling stocks higher. Shares were up 5.5% at 10:55 a.m. ET, testing highs for the day. 

So what 

There are a few dynamics at work today that may be tailwinds to MGM Resorts. The most important is falling interest rates as the omicron variant spooks the market. In the last month, 10-year government bond yields have fallen 7 basis points, which helps growth stocks and could keep MGM's borrowing costs low over the long term.

Craps being played at a casino.

Image source: Getty Images.

We are also seeing the market grapple with what's taking place in Macao, where the government could implement new rules for casinos over the next year. Junket operator Suncity Group Holding's CEO, Alvin Chau Cheok Wa, was also arrested by Chinese officials over the weekend, raising further questions about how China will view gambling in Macao in the long term. As a mainly U.S. company, MGM Resorts could be well positioned to benefit if there is a crackdown.

Now what 

I wouldn't read too much into today's move. Shares of many growth stocks are trading higher today, and the market generally is less worried about inflation and higher interest rates, which is helping shares. Fundamentally, I like where MGM Resorts is headed, and I won't be changing my investment thesis based on any news out today.