Zohran Mamdani, a 33-year-old democratic socialist from Queens, has surged to the top of New York City’s Democratic mayoral primary, leading the field after the first round of ranked-choice voting and leaving former Governor Andrew Cuomo trailing in second place.

The upset has sent immediate shockwaves through the city’s political and financial sectors, with many business leaders describing the result as both unexpected and deeply unsettling.

Mamdani has not officially secured the Democratic nomination. New York City uses ranked-choice voting, in which voters rank candidates in order of preference. Because no candidate received more than 50% of the first-choice votes, the city will now begin eliminating the lowest-polling candidates and redistributing their votes based on second- and third-choice rankings.

Still, Mamdani’s commanding first-round performance makes him the frontrunner in a race many had expected Cuomo to dominate.

For the city’s business community, Mamdani’s rise is cause for concern.

“This is what we’ve been afraid of,” said Kathryn Wylde, president and CEO of the Partnership for New York City, earlier this week. “People are terrified.”

Investors and executives worry that a Mamdani administration could usher in sweeping changes to tax policy, business regulation, and public spending. His platform includes proposals to expand social programs, raise taxes on the wealthy, and roll back police funding — all positions that have drawn sharp criticism from Wall Street.

Bradley Tusk, a tech investor and former campaign manager for Michael Bloomberg, warned of broader implications. “When a major financial center elects a high-profile socialist mayor, it doesn’t stay local,” he told Axios. “It affects investor confidence everywhere.”

Mamdani’s performance comes amid a wave of left-leaning political victories in major U.S. cities. Chicago elected progressive Brandon Johnson last year, and Boston’s Michelle Wu continues to implement ambitious policy goals. But the results have been mixed: Johnson is currently facing historically low approval ratings, while Wu has retained support heading into her re-election campaign.

Tusk cautioned that New York could face a similar fate. “Detroit and Baltimore were once economic powerhouses too,” he said. “And when the business base leaves, it’s hard to bring it back.”

The result has also reignited discussion about the “Wall Street South” trend — the migration of finance firms from New York to Florida. Ken Griffin’s decision to move Citadel’s headquarters to Miami in 2022 symbolized the shift. Some warn Mamdani’s potential election could accelerate the exodus.

This isn’t the first time New York’s business leaders have feared a progressive takeover. During the 2013 mayoral race, Bill de Blasio’s populist campaign raised concerns about a looming tax hike on top earners. But de Blasio ultimately built relationships with corporate leaders, including Goldman Sachs’ Lloyd Blankfein and media mogul Rupert Murdoch.

Whether Mamdani will pursue a similar approach — or break from past precedent — remains to be seen.

(YWN World Headquarters – NYC)