Wall Street rebounds: What ServiceNow, Hasbro, Microchip, and other top gainers signal for investors

Which US stocks led the rally on April 24, 2025?

Equity markets in the United States closed significantly higher on April 24, 2025, with a broad-based rally led by technology, semiconductors, healthcare innovation, and select industrials. The Nasdaq Composite surged by 2.7%, the S&P 500 added 2%, and the Dow Jones Industrial Average advanced 1.2%, marking the strongest single-day gains in weeks. The rally was underpinned by a positive shift in investor sentiment following better-than-expected earnings reports, easing pressure from recent trade disputes, and growing optimism over a dovish turn in Federal Reserve policy.

The session’s momentum was driven by a group of more than 20 high-performing stocks, including names from diverse sectors such as Pony AI, ServiceNow, Hasbro, MP Materials, and Summit Therapeutics. This broad advance came as investors reallocated capital from defensive sectors into growth-oriented names, reflecting a risk-on environment amid hopes of stabilising macroeconomic conditions.

Why did Pony AI and Summit Therapeutics post outsized gains?

Autonomous driving technology company Pony AI Inc. was the top gainer, surging 39.41% to $7.57. The dramatic rise was fuelled by strong trading volumes, which reached 19.24 million shares—more than eight times its three-month average. While the company remains unprofitable, renewed investor enthusiasm around artificial intelligence and autonomous vehicle development contributed to the bullish sentiment. Pony AI, which had underperformed over the past year with a 36.92% decline, saw speculative inflows possibly linked to upcoming product announcements or strategic partnerships in the EV supply chain.

Similarly, Summit Therapeutics Inc. gained 10.44% to close at $36.70, continuing a breakout trend that has delivered a staggering 850.78% return over the past twelve months. The biotech firm has drawn institutional attention amid speculation around advanced-stage clinical data in its oncology and immunology pipeline. While no earnings or revenue data yet validate the valuation, the stock has become a speculative favourite on momentum alone.

How did ServiceNow, Hasbro, and Klaviyo contribute to the tech and consumer rebound?

ServiceNow Inc. saw its shares climb 15.49% to $938.57 following an earnings beat and upward revision to full-year guidance. The cloud software giant, which provides workflow automation tools for large enterprises, has benefited from strong demand for its AI-driven IT services and digital transformation solutions. ServiceNow now holds a $194.3 billion market capitalisation and trades at a forward P/E ratio of 137.42, reflecting high investor expectations but also robust top-line performance.

Consumer discretionary demand was reflected in the sharp rise of Hasbro Inc., which rallied 14.58% to $60.37. The company’s Q1 results showed stronger-than-anticipated resilience in core toy segments, with cost optimisations supporting margins. Though Hasbro remains down 6.36% on a trailing twelve-month basis, the results suggest a recovery in consumer sentiment even amid elevated inflation and macro uncertainty.

Klaviyo Inc., a marketing automation platform that went public in late 2023, added 10.29% to reach $28.94. The firm has begun to stabilise after several quarters of volatile trading, and recent product updates appear to be resonating with mid-market e-commerce customers seeking better targeting through AI-based customer segmentation tools.

What drove gains in semiconductor and AI hardware stocks?

The semiconductor sector continued its recovery as traders rotated into oversold names in anticipation of a bottoming in inventories and an upturn in demand driven by AI infrastructure growth.

Microchip Technology Incorporated rose 12.38% to $47.12. Despite a year-to-date underperformance of nearly 50%, the company’s long-term position in microcontroller and analog chip markets remains stable. Lattice Semiconductor Corporation, which surged 11.82% to $49.09, benefited from increased interest in low-power programmable logic devices used in edge AI deployments.

Mobileye Global Inc., a key player in automotive driver-assist systems, advanced 9.85% to $14.50. The stock remains well off its highs, down 50.34% over the past year, but recent improvements in unit volumes and autonomous software trials have offered some upside support. ON Semiconductor Corporation climbed 9.12% to $39.96 as analysts cited improving utilisation rates in electric vehicle and industrial verticals.

MKS Instruments Inc., which supplies essential components for semiconductor manufacturing, posted a 9.16% gain to $74.13 amid broader optimism around capital equipment demand rebounding in the second half of 2025.

Which industrial and energy stocks joined the rally?

United Rentals Inc., a leading equipment rental firm, surged 9.87% to $647.36. The rally was underpinned by earnings strength tied to infrastructure and construction activity, which continues to benefit from U.S. federal stimulus under the current government’s capital spending program. Similarly, TechnipFMC plc gained 9.87% to close at $27.50, supported by increased global offshore oil services demand and improved pricing across its project portfolio.

Amentum Holdings Inc., a government contractor focused on engineering and mission support, jumped 9.77% to $21.68 as defence sector rotation picked up steam following rising geopolitical tensions in Eastern Europe and the Pacific. FirstCash Holdings Inc., which specialises in pawn-based lending and retail finance, added 9.12%, driven by increasing demand for alternative lending options in lower-income consumer brackets.

How did healthcare and life sciences stocks perform?

Investor appetite for healthcare innovation was evident in the performance of several clinical-stage and commercial-stage biotech stocks. Kymera Therapeutics Inc. rose 9.32% to $33.56, tracking strong inflows following expanded Phase 2 clinical trials. Biohaven Ltd., which added 9.24% to $23.40, continues to generate optimism around its neuroinflammatory pipeline, despite its lack of profitability.

SpringWorks Therapeutics Inc. gained 9.03% to reach $44.93, buoyed by regulatory developments in its rare disease portfolio. ResMed Inc., a sleep apnea and respiratory care device maker, saw a 10.10% rise to $236.10 after reporting margin expansion and stronger adoption of its cloud-connected CPAP devices across Europe and North America.

Bausch + Lomb Corporation ended the session 9.03% higher at $13.89, making up for earlier declines on investor expectations of stabilising global optical health demand.

What is the investor sentiment and institutional flow trend?

Institutional flows shifted notably towards growth and mid-cap innovation on April 24, with significant above-average trading volumes across most gainers. Many of the stocks listed traded at more than double their 3-month average volumes, confirming broad-based participation from hedge funds, quant desks, and retail aggregators.

Sector rotation was evident, as capital moved from defensive utilities and staples into tech, industrials, and biotech. This shift signals a potential market recalibration amid growing anticipation of rate cuts by the Federal Reserve later in the year.

At the macro level, market participants continue to monitor the U.S. central bank’s forward guidance and inflation trajectory. Although President Trump’s recent decision to pause enforcement of new semiconductor import tariffs offered relief, risks tied to prolonged trade policy shifts remain in focus. Additionally, the Federal Reserve Board’s recent notes on rising economic policy uncertainty suggest that volatility may re-emerge if macro data disappoint.

Despite this, the day’s breadth of participation suggests renewed investor conviction in high-beta sectors, particularly where valuation resets have already occurred over the past six months.

How should investors interpret this multi-sector rally?

The widespread gains seen on April 24, 2025, reflect not just short-term optimism but also selective confidence in sector-specific fundamentals. While speculative plays like Pony AI and Summit Therapeutics captured headlines, fundamentally driven rallies in ServiceNow, Hasbro, and United Rentals point to a deeper recovery narrative.

However, caution remains essential. Several stocks among the day’s top gainers still trade without earnings support and are subject to sentiment-driven volatility. For investors, maintaining a balanced approach that includes both high-growth and value-aligned positions may offer the best defence against any renewed uncertainty, particularly as markets remain data-sensitive.

The trading session served as a critical inflection point, reinforcing the idea that while macro risks persist, strong earnings, policy clarity, and innovation-led growth continue to hold sway in dictating near-term market direction.