Today’s Top Stories: Nvidia Rebounds, Senate Votes on Crypto Bill and Treasury Yields Hit 5%

TLDR

• Nvidia shares dipped over 3% after AI safety concerns sparked a broad semiconductor selloff, but recovered slightly Tuesday
• Elon Musk hinted at a possible Tesla-SpaceX merger at the All-In Summit, though no formal plans were announced
• The U.S. Senate is preparing a key vote on the CLARITY Act, a major crypto regulation bill that needs 60 votes to advance
• TSMC hit a new chip milestone as MediaTek launched a 2nm smartphone processor built for on-device AI
• The 10-year Treasury yield rose above 5% for the first time since 2007, raising pressure on growth stocks

Wall Street had a busy Tuesday. Investors tracked developments across semiconductors, electric vehicles, crypto regulation and the bond market all at once.

Here is a breakdown of the five biggest stories moving markets right now.

Nvidia and the AI Safety Debate

Nvidia shares fell more than 3% Monday after prominent tech figures called for a slowdown in advanced AI development, citing safety risks. AMD, Broadcom and Micron also dropped. The Philadelphia Semiconductor Index fell 5.9%.

President Trump pushed back on those calls, saying slowing AI development could let China pull ahead. Nvidia CEO Jensen Huang echoed that view, arguing the U.S. can build AI safely without losing its lead.

Nvidia shares recovered modestly on Tuesday. But the debate signals a new risk for investors following the AI trade closely.

Elon Musk Opens the Door on Tesla-SpaceX Merger

At the All-In Summit, Elon Musk was asked why Tesla and SpaceX remain separate companies despite growing overlap in AI, robotics, batteries and energy.

Musk did not dismiss the idea of combining the two companies. He pointed to increasing operational ties between them.

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Tesla shares did not move much on the comments. But the remarks have reignited a conversation among investors and analysts about whether a formal merger could ever happen.

Coinbase and the Senate Crypto Vote

The U.S. Senate is preparing to vote on the CLARITY Act, a bill that would create a clearer regulatory framework for digital assets.

The vote is a procedural one and needs 60 votes to advance. Disagreements remain over stablecoins, banking competition and rules around political officials holding crypto.

For Coinbase and the broader crypto industry, passing the bill would bring more regulatory clarity. Failing to pass it could mean more uncertainty ahead.

TSMC Hits a 2nm Milestone

Taiwan Semiconductor Manufacturing Company reached a new production milestone this week. MediaTek unveiled its Dimensity 9600 Pro smartphone chip, built using TSMC’s 2-nanometre technology.

The chip is aimed at premium smartphones and improves the ability to run AI directly on a device, without needing cloud access.

This move shows AI chip demand is spreading beyond data centers and into everyday consumer devices.

Treasury Yields Cross 5%

The 10-year U.S. Treasury yield climbed above 5% Tuesday, its highest level since 2007. The move reflects inflation worries, higher oil prices and expectations that the Federal Reserve may raise rates again.

Higher yields make government bonds more attractive compared to stocks. That puts pressure on expensive growth names like Nvidia and Tesla.

With yields rising and multiple headlines hitting at once, investors have a lot to watch this week.