Nvidia-related turmoil weighed on Asian markets, while the pan-European STOXX 600 reached its first record high since August. Nvidia shares fell nearly 7% in premarket trading after reports that the board had discussed CEO Jensen Huang’s future.

According to Sina Finance, citing The New York Times, the newspaper reported an alleged extramarital relationship between Huang and another Nvidia executive; separate reports said the board met Wednesday night to discuss whether to remove him.

U.S. stock futures fell 0.5%. The 10-year U.S. Treasury yield briefly touched 5% during European trading, while Germany’s 10-year yield edged down to 3.3% but was up about 5 basis points for the week. Brent crude rose above $92 a barrel, and the dollar reached a 19-month high, gaining nearly 1.5% since inflation data earlier this week prompted markets to raise expectations for a Federal Reserve rate hike next month.

CME FedWatch data showed traders pricing in a 90% chance of a 25-basis-point hike and a 9.2% chance of a 50-basis-point hike, compared with a one-third chance of unchanged rates a week earlier. Société Générale strategist Kit Juckes said the Nvidia news had contributed to risk aversion and a stronger dollar, while a major shift in inflation expectations was the deeper driver.

Saxo Bank chief investment strategist Charu Chanana said Nvidia’s earnings next Tuesday would be the next key test. Strong results could reinforce the AI growth narrative but might not fully eliminate the valuation discount related to corporate governance.