Wall Street ends mixed… President Lee: ‘We will make it advantageous to sell even a single home held for speculation’ [Morning Briefing]

◆ Nvidia plunges despite strong results… Wall Street ends mixed

The three major U.S. stock indexes ended mixed after a session marked by sharp swings. Nvidia, a key pillar of the artificial intelligence (AI) industry, posted robust fourth-quarter results for last year, but the market used the news as a trigger to sell—akin to “buy the rumor, sell the news.” As Nvidia slumped, AI and semiconductor shares that had helped lift global equities since the start of the year were also swept up in the sell-off. On the 26th local time, the Dow closed up 17.05 points (0.03%) at 49,499.20. The S&P 500 fell 37.27 points (0.54%) to 6,908.86, and the Nasdaq dropped 273.69 points (1.18%) to finish at 22,878.38. In Nvidia’s fiscal 2026 results, both revenue and earnings per share (EPS) beat market expectations, and key indicators such as gross margin hit new highs. Even so, investors dumped Nvidia shares shortly after the open. They also sold off major AI and semiconductor names across the board. With earnings already priced in and doubts that results could come in even stronger from here, selling pressure appears to have been triggered. Along with Nvidia, TSMC, Broadcom, Micron Technology, AMD, and Intel fell around 3%.

◆ President Lee: “We will mobilize all policy tools so that selling is more advantageous… even for a single home held for investment or speculation”

President Lee Jae-myung said on the 26th, “We will mobilize all policy tools to create conditions in which selling is more advantageous than holding—not only for multi-home owners but also for owners of a single home held for investment or speculation rather than for residence.” In a post on X (formerly Twitter) that day, he said, “We will actively protect ordinary housing, but design the system so that investment and speculation using housing are thoroughly blocked,” adding the remarks. He continued, “Various regulations and burdens will be based on a single home for actual residence, with detailed weightings depending on whether it is used for residence, the number of homes owned, price level, and so on,” and added, “Ultra-high-priced homes will face burdens and regulations commensurate with the level in advanced-country capitals.”

President Lee also said on the 23rd of last month, regarding the long-term holding special deduction (Jangteuk gongje), a representative tax-saving measure in real estate transactions, “If it is for investment or speculation rather than for residence, it seems strange to grant a tax reduction simply because it was held long-term,” signaling possible adjustments. On the postponement of the heavier capital gains tax on multi-home owners—set to end on May 9—he stressed, “The government’s authority comes from trust and consistency. A government that has lost its authority becomes a plant beyond a waddling duck,” and added, “For the authority and trust of government policy, we cannot leave things such that multi-home owners who held on are better off than those who sold before May 9.” He continued, “Through strong financial, tax, and regulatory measures, the government will create a situation where selling is profitable and holding on results in greater losses,” adding, “Holding on is a freedom, but it is good to be aware of this point.”

◆ White House: “Trump remains open to talks with Kim Jong Un without preconditions”

The White House said on the 26th local time that President Donald Trump remains “open to having talks without any preconditions” with North Korean leader Kim Jong Un, whom he met three times during his first term. In response to questions from Korean media about Kim’s remarks—released the previous day—expressing a “conditional willingness to improve U.S.-North Korea relations,” a White House official replied as such and added, “U.S. policy toward North Korea has not changed.” The reference to an “unchanged” North Korea policy is seen as confirming that the Trump administration’s basic principle of pursuing North Korea’s complete denuclearization remains intact. The official also noted, “During his first term, President Trump held three historic summits with North Korean leader Kim Jong Un that stabilized the Korean Peninsula.”

In the summary report of North Korea’s 9th Workers’ Party congress released the previous day, Kim said in effect that North Korea could maintain good relations with the United States if Washington recognizes its status as a nuclear-armed state and withdraws its hostile policy. Diplomatic circles are watching the possibility that communication between the U.S. and North Korean leaders could be explored around President Donald Trump’s planned visit to China, expected between late next month and early April.

◆ “We will rein in soaring rice prices”… Agriculture Ministry to supply up to 150,000 tons of government rice in stages

The Ministry of Agriculture, Food and Rural Affairs said it will supply government-managed rice in stages, up to 150,000 tons, to stabilize soaring rice prices. The ministry held a meeting of the Grain Supply and Demand Stabilization Committee on the 26th to discuss the rice supply-demand situation and the government’s response. It plans to first release 100,000 tons of 2025-crop government rice, then review the timing and volume of a second tranche depending on market conditions. The ministry had earlier said this month it would supply government rice to stabilize supply and demand as producing-area rice prices continued to rise and the pace of gains accelerated. Producing-area rice prices have risen 1.2% in just two months since the start of the year. As of the 15th, producing-area rice prices compiled by the National Data Portal were 57,630 won per 20 kg—more than 230,000 won per bag (80 kg). The average retail rice price stood at 63,000 won per 20 kg as of the previous day, 15–16% higher than last year or the historical average. Last month, the ministry also announced measures to stabilize rice supply and demand, including putting on hold the market isolation of 100,000 tons of 2025-crop rice and additionally supplying up to 60,000 tons of government rice for processing. However, as prices continued to rise, it decided to release more rice.

◆ Early-spring weather with daytime highs of 7–15°C… light rain in parts of the country

Friday the 27th will be mostly cloudy nationwide, with early-spring-like weather continuing. Morning lows are expected at 1–9°C, with daytime highs of 7–15°C. Temperatures will remain above seasonal norms for the time being. As temperatures rise, frozen ground will thaw and the ground may weaken, so caution is advised regarding road or construction-site subsidence, landslides, and rockfalls. Rain is expected in Jeolla, southern North Gyeongsang, and South Gyeongsang through the morning, and in Busan, Ulsan, and Jeju from daytime. Rain or snow is also expected in the mountainous areas of Gangwon and along the east coast through daytime. Expected precipitation is less than 1 mm in Daejeon and southern South Chungcheong and in central/southern North Chungcheong; around 1 mm in North Jeolla; around 5 mm in Busan, Ulsan, and South Gyeongsang; and less than 5 mm in Daegu, southern North Gyeongsang, Ulleungdo, and Dokdo. Fine dust levels are expected to be “Good” nationwide due to smooth atmospheric dispersion and an inflow of clean easterly winds.

Reporter Kim Ye-rang, Hankyung.com yesrang@hankyung.com