On August 12, 2025, the U.S. and China agreed to extend their tariff truce, reducing trade tensions and providing a more stable international economic outlook. This development coincided with an in-line Consumer Price Index (CPI) report, which held steady at 2.7% year-over-year.
The stable inflation reading fueled investor optimism for potential interest rate cuts by the Federal Reserve, which could lower borrowing costs for businesses and consumers. This macro-economic environment is generally favorable for industrial companies like nLIGHT.
The extension of the tariff truce helps mitigate risks associated with global trade disputes, which can impact supply chain costs and customer demand in nLIGHT's commercial markets. This stability is beneficial for long-term business planning and operational efficiency.
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