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Stocks can rally when Congress goes on summer break
MarketWatch says the key shift is reduced regulatory uncertainty when lawmakers are not actively working.
MarketWatch reports that stock prices tend to become less volatile during periods when Congress goes on summer break.
The outlet attributes the typical improvement to lawmakers being less active, which reduces regulatory uncertainty that can otherwise weigh on markets.
According to MarketWatch, the rally dynamic is tied to the level of policy uncertainty created while Congress is in session, rather than to changes in underlying fundamentals.
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