Why RH Stock Jumped 20% in October

RH (Restoration Hardware) stock surged 20% in October 2026 due to a combination of factors: falling interest rates sparked investor rotation from AI stocks into housing sector stocks, and the company experienced a short squeeze with 58% of its float sold short. The stock rallied starting October 20th as Treasury yields fell and market sentiment shifted toward housing recovery potential. RH delivered better-than-expected earnings with projected full-year revenue growth of 5.5%-7%.