President Trump’s TikTok-for-tariffs deal ultimately hinges on a cease-fire in the U.S.-China AI chip war. The consequences may be dramatic for Nvidia and the world order.

The artificial intelligence (AI) cryptocurrency sector nosedived on Tuesday, posting an 8.5% decline that wiped out more than $2.5 billion in market capitalization. The sell-off came in response to escalating tensions between the United States and China, triggered by the Trump administration's aggressive tariff policies.

Authorities also announced a Google inquiry and put the biotech firm Illumina and Calvin Klein's parent, PVH, on China's "unreliable entities list."