European stocks reached a record high for the first time since August, while Asian shares fell after reports of turmoil at Nvidia sent its shares down as much as 8.8% in after-hours trading. The dollar rose to its strongest level since April last year as markets increased bets on a Federal Reserve rate hike.
The STOXX 600 reached a record high for the first time since August, while the MSCI Asia-Pacific ex-Japan Index fell 1.2%, with Taiwan leading declines. Wall Street futures were down 0.5%.
Asian markets fell after reports that Nvidia's board had met to consider the future of CEO Jensen Huang. Nvidia shares dropped nearly 7% in premarket U.S. trading and had fallen as much as 8.8% in after-hours trading. Alibaba and Tencent fell 6.7% and 2.6%, respectively, amid concerns that Washington could restrict access to advanced processors at offshore datacentres.
The U.S. 10-year Treasury yield briefly reached 5%, while the dollar rose for a third day to its strongest level since April last year. Traders priced in a 90% chance of a 25-basis-point Federal Reserve rate hike next month, compared with a one-in-three chance of no change a week earlier. Brent crude rose above $92 a barrel.
