Stock prices are known to experience greater volatility when Congress is in session. This volatility is primarily driven by the regulatory uncertainty that lawmakers create through potential new legislation and policy changes.
During the summer break, however, the absence of active legislative discussions allows investors to operate with a sense of stability. This period of reduced uncertainty often leads to a rally in stock prices as investors feel more confident.
The historical trend shows that many investors take advantage of this time to make strategic decisions, contributing to the upward movement in stock prices.