Wall Street futures fell 0.5% as Nvidia shares dropped nearly 7% in premarket trading amid reports its board had met to decide CEO Jensen Huang’s future. The 10-year Treasury yield returned to 5%, while traders priced a 90% chance of a 25-basis-point Federal Reserve rate hike next month.
Global stocks were turbulent on Thursday as reports that Nvidia’s board had met to decide the fate of CEO Jensen Huang sent the company’s shares down nearly 7% in premarket trading. Wall Street futures fell 0.5%, while Europe’s STOXX 600 reached a record high.
The US 10-year Treasury yield returned to 5%, and the dollar reached its strongest level since April last year. After stronger-than-expected US inflation data, traders priced a 90% chance of a 25-basis-point Federal Reserve rate hike next month and 9.2% odds of a 50-basis-point increase.
Reports said the board met after allegations involving Huang, while Chinese technology companies Alibaba and Tencent fell 6.7% and 2.6%, respectively. Brent crude rose above $92 a barrel. Nvidia earnings next Tuesday were identified as the next key test.
