 "How Wall Street reacted to Zohran Mamdani's New York City mayoral win")
Democratic candidate Zohran Mamdani was elected the mayor of New York City on Tuesday (local time) after a decisive win in one of the most closely watched races in years. The 34-year-old Queens assemblyman defeated former New York State Governor Andrew Cuomo, who ran as an independent, and Republican nominee Curtis Sliwa.
The election saw a record voter turnout, reflecting high public engagement across the city. Mamdani’s victory marks a milestone, as he becomes the first Muslim democratic socialist to hold the mayoral office in New York.
While many in the city’s financial sector have been wary of his progressive policies, several business leaders have since offered cautious support following his win, Financial Times reported.
Mamdani’s criticism of the wealthy elite and his proposal to impose additional income tax on salaries above $1 million had initially alarmed New York’s business class. However, in the final weeks before the election, he reportedly stepped up efforts to reach out to corporate leaders, holding multiple meetings with top executives.
Business concerns and cautious optimism
Despite the outreach, some financiers remain skeptical. A hedge fund manager told the Financial Times, “We cannot have a socialist in the greatest capitalist city in the world.”
Another business leader said Mamdani’s recent moderation “seems a bit insincere", while others pointed to his rigid stance on economic and geopolitical issues, including the Israel-Palestinian conflict, the news report said.
Prominent figures such as Bill Ackman, Michael Bloomberg and Alex Karp had backed Cuomo during the campaign, channeling millions toward efforts to block Mamdani’s rise. Yet, after the results, Ackman extended an olive branch. “Now you have a big responsibility. If I can help NYC, just let me know what I can do,” he wrote in a social media post.
Wall Street shifts to a pragmatic approach
As Mamdani’s victory neared, several Wall Street leaders chose a pragmatic stance, expressing readiness to cooperate with his administration, the news report said.
Robert Steel, a longtime executive and former Bloomberg official, said the mayor’s success would depend on his key appointments. “There are 30 to 50 people who really run the city,” he said.
Antonio Weiss, a veteran financier and former US Treasury adviser, backed a moderate approach to taxes. "There should be no argument with a small tax increase that’s paired with a real effort to make government more efficient,” he said, adding that such measures could fund childcare programmes and help retain young families in the city.
Mamdani vows to tackle ‘culture of corruption’
Throughout his campaign, Mamdani openly criticised what he described as “a culture of corruption” benefiting New York’s wealthiest. “I will put an end to the culture of corruption that has allowed billionaires like Trump to evade taxation and exploit tax breaks,” he declared on election night.
To finance his policy goals, Mamdani has proposed raising the corporate tax rate to 11.5 per cent, aligning with New Jersey’s upper bracket, and introducing a 2 per cent flat tax on incomes above $1 million. His campaign estimates these measures could generate $9 billion, though the details remain unclear, BBC reported.
Governor Kathy Hochul has already said she would not support tax hikes on the wealthy, setting up a potential clash with the new mayor.
Questions over Mamdani's lack of experience
Critics argue that Mamdani’s limited administrative experience could hinder his ability to govern a city as complex as New York.
US President Donald Trump has labeled him a “communist” and threatened to withhold federal funding from the city under his leadership -- accusations Mamdani has repeatedly rejected.
Addressing Trump directly during his victory speech, Mamdani said, “Donald Trump, since I know you’re watching, I have four words for you: Turn the volume up. To get to any of us, you will have to get through all of us."