Stocks rally when Congress goes on summer break. Here is the hidden reason.

Stock markets historically show different performance patterns during periods when Congress is in session versus in recess. Researchers have studied the correlation between legislative activity and market volatility, finding measurable differences in trading volume and price movement during these periods. The reasons cited for these patterns include changes in regulatory announcements, policy proposals, and legislative votes that affect specific sectors. No single causal mechanism has been identified as the sole driver of market behavior during congressional sessions.

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