Top U.S. gainers: Regencell, Disney, Rockwell, and Tempus AI spark broad market rally

What Drove the Rally in U.S. Stock Markets on May 7, 2025?

U.S. equity markets ended higher on May 7, 2025, with investor risk appetite rebounding following the Federal Reserve’s decision to maintain interest rates within the 4.25%–4.50% corridor. Market participants responded favourably to Chair Jerome Powell’s balanced tone, which emphasised data dependence amid mixed economic signals. Against this backdrop, high-beta and growth-oriented names staged a notable comeback, with multiple small- to mid-cap companies delivering double-digit percentage gains.

The Nasdaq Composite advanced 0.3%, the Dow Jones Industrial Average gained 0.7%, and the S&P 500 rose 0.4%. Institutional desks observed aggressive inflows into underperforming segments of the market, particularly biotech, healthcare platforms, and tech-enabled financial services. A visible rotation out of defensive sectors into innovation-led growth names marked a shift in sentiment, albeit cautiously framed by ongoing global trade and regulatory headwinds.

Which Stocks Led the Surge and Why?

Angi Inc. saw its shares surge 34.67% to $15.15 as the company posted strong quarterly results that beat analyst estimates. The online home services platform reversed part of its 52-week underperformance of nearly 56%, bolstered by improved service bookings and cost-efficiency measures. Angi’s trading volume was nearly five times the 3-month average, indicating institutional interest in value recovery plays.

Oscar Health, Inc. climbed 30.22% to close at $17.02, as health plan enrolments exceeded projections. The digital-first insurer, operating with a high trailing P/E of 170.2, benefited from an uptick in demand for individual and family health plans in the wake of broader healthtech adoption across U.S. healthcare systems. The share price rally helped narrow its 52-week loss of 37%.

Elanco Animal Health Incorporated jumped 26.29% to $12.01 after releasing a robust earnings report that highlighted resilient demand for pet therapeutics. Investor attention was drawn to Elanco’s strategic focus on cost containment and product innovation. Despite a year-to-date decline of over 43%, the stock showed early signs of a potential re-rating.

Regencell Bioscience Holdings Limited continued its meteoric rise, gaining 25.82% to close at $189.99. The Hong Kong-based biotech firm has now delivered a staggering 2,327% return over the past 12 months, with market participants focused on its neurotherapeutic candidates in preclinical stages. Liquidity remains thin, but sentiment is driven by expectations of breakthrough outcomes in early trials.

LivaNova PLC rose 23.72% to $43.50 on strong volume, as investors responded to a favourable readout of its neuromodulation devices for epilepsy treatment. The medical technology firm’s long-term underperformance appears to be reversing on the back of renewed commercial traction and regulatory clarity in the EU and U.S. markets.

How Did AI and Software Stocks Perform?

AvidXchange Holdings, Inc. gained 18.78% to reach $9.74, marking a sharp uptick in sentiment around B2B payment automation. The company processed record invoice volumes in Q1 and expanded its SaaS capabilities to mid-sized enterprise clients. The stock, however, remains down 29.31% over the past year, reflecting earlier profit margin compression.

Charles River Laboratories International, Inc. advanced 18.68% to $136.97 as investors rotated back into contract research firms. While its trailing P/E ratio stands at an inflated 684.85, the recovery in biotech funding has lifted demand for preclinical and clinical trial outsourcing services, especially from venture-backed startups.

Halozyme Therapeutics, Inc. climbed 18.12% to $70.14, with a year-to-date gain of over 41%. Institutional analysts pointed to the strength of its ENHANZE drug delivery platform and licensing pipeline expansion. The rally was driven by favourable updates from ongoing partnerships with large-cap pharma firms.

PTC Therapeutics, Inc. gained 12.63% to close at $40.76, supported by new data on its rare disease drug candidates. The company is not yet profitable, but investor enthusiasm around late-stage assets and orphan drug designation benefits continues to support trading interest.

Tempus AI, Inc. rose 12.59% to $58.76 with a sharp increase in volume. The healthcare AI startup, recently listed on the public markets, attracted attention after entering a strategic partnership with a leading U.S. hospital network. The firm’s proprietary predictive analytics platform aims to personalise oncology care through machine learning integration.

What Other Sectors Participated in the Rally?

Tripadvisor, Inc. rose 12.54% to $14.36, driven by speculative positioning amid restructuring rumours. With travel activity plateauing and core advertising revenue facing cyclical pressures, the company is seen as a possible M&A target by private equity players or industry rivals.

Rockwell Automation, Inc. added 11.90% to $283.17 after issuing optimistic forward guidance and highlighting AI-enhanced industrial automation solutions. Buy-side interest increased after management signalled growing demand for factory automation in reshoring-led manufacturing.

ZEEKR Intelligent Technology Holding Limited advanced 11.51% to $25.19 in early post-IPO volatility. The EV maker’s focus on high-end electric vehicles and European expansion provided upward momentum, although shares remain 20% below peak levels.

Forge Global Holdings, Inc. jumped 11.01% to $13.41, supported by expectations of a more active IPO calendar in H2 2025. As a secondary trading platform for private shares, Forge’s fortunes are tightly linked to venture capital liquidity cycles.

Coupang, Inc. rose 10.83% to $26.60, with South Korea’s largest e-commerce platform benefiting from higher-than-expected Q1 sales and operating leverage. Analysts flagged improved unit economics and expansion into fintech services as long-term catalysts.

The Walt Disney Company gained 10.76% to $102.09, reacting to Q2 FY25 earnings that beat estimates. Streaming subscriber declines moderated, and Parks segment performance exceeded forecasts. Disney also unveiled a new resort development with Miral in Abu Dhabi, aimed at expanding its global footprint.

Hagerty, Inc. increased 9.80% to $9.75 following stronger retention in classic car insurance. Despite premium valuations, the niche insurer continues to gain market share.

Nebius Group N.V. rose 9.62% to $27.45 amid growing demand for AI-ready cloud infrastructure. The company has benefited from geopolitical shifts that are prompting U.S. and European clients to diversify cloud dependencies.

Ardent Health Partners, Inc. added 9.22% to $14.21. The for-profit hospital network posted improved EBITDA margins in Q1 and is attracting attention due to consolidation activity in the healthcare provider space.

Teva Pharmaceutical Industries Limited climbed 9.18% to $17.60 as sentiment improved on the back of a settlement update in opioid litigation and better-than-expected generics performance.

Voya Financial, Inc. jumped 9.08% to $65.71 after earnings showed resilience in its retirement and investment management businesses. The company saw increased net flows from institutional accounts.

Resideo Technologies, Inc. gained 8.93% to $19.03 as smart home device makers rebounded. The firm’s connected thermostat and safety tech saw a seasonal demand spike.

BlackLine, Inc. rose 8.62% to $50.67 as the firm announced expanded ERP integrations with global partners. The accounting automation provider is seeing growing mid-market adoption.

California Resources Corporation advanced 8.34% to $38.47 as crude oil prices stabilised near $81 per barrel. Investors responded positively to its updated capital allocation strategy and reduced leverage metrics.

How Is Institutional Sentiment Shaping the Rally?

Institutional flows on May 7 suggested broad-based rotation into growth stocks, particularly in biotech, AI-driven platforms, and healthtech services. Quantitative funds and long-only mutual funds were observed increasing positions in oversold mid-cap names, with a tactical focus on earnings-driven momentum and AI adoption beneficiaries.

Volume spikes in Tempus AI, Oscar Health, Charles River, and AvidXchange indicated renewed risk appetite among hedge funds. Conversely, utility and consumer staple outflows confirmed that the day’s movement reflected strategic reallocations rather than a wholesale market sentiment shift.

What Risks and Outlook Factors Should Investors Watch?

Despite the rally, market participants remain cautious about persistent risks. U.S.-China trade tensions continue to affect sentiment, especially for firms reliant on semiconductor exports or global supply chains. The Trump administration’s recent tightening of AI chip export rules to China could weigh on Q2 guidance for related sectors.

Further, the May CPI inflation print due next week will shape expectations for the June Federal Reserve policy meeting. While the Fed’s current stance is neutral, any inflationary surprises could reignite concerns about policy tightening.

Overall, while May 7 reflected a healthy rebound in U.S. equities, sustained gains will require continued earnings outperformance and macro stability. Investors are advised to focus on names with clear growth catalysts, operational leverage, and exposure to secular innovation trends.