NEW YORK CITY, New York: Wall Street reacted with unease as Zohran Mamdani, a self-described democratic socialist, was elected mayor of New York City, raising fears among financiers about the city's competitiveness and business climate.

Mamdani's victory marks a striking political shift for America's financial capital. His campaign centered on affordability and a promise to make the city "work for everyone." His agenda includes a rent freeze for rent-stabilized apartments, free bus service, universal childcare, and city-run grocery stores, along with higher taxes on corporations and wealthy New Yorkers.

The finance community worries that such measures could drive businesses and talent away from the city. "Mamdani's win will be an interesting experiment, and we'll see how much he tries to really change New York City and how he is accepted," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. Looking collectively at the New York City race and Democratic victories in New Jersey and Virginia, Ghriskey said, "It's a fairly strong mandate against the administration in Washington."

While the mayor has no direct oversight over Wall Street, the position often shapes how investors view New York's openness to business. Some investors acknowledged that affordability has become a pressing concern, even as they questioned Mamdani's tax plans.

"When I look at the economics around the cost of living in New York City and when a one-bedroom apartment in New York City is US$5,000 a month, that's unsustainable," said Phil Blancato, chief market strategist at Osaic. "And whether the rhetoric around what can be done or can't be done is true or not, that's the reason for this kind of ... victory in New York City. But when you think about the increase in taxes at the small-business level, corporate level ... that has a significant impact."

Some in the finance sector hope Mamdani will moderate his policies once in office. "A Mamdani win is a risk I'm watching in 2026," said Dean Lyulkin, CEO of Cardiff. "Actual policy often turns out much more benign than campaign rhetoric, but if other major cities follow this pattern, markets may start pricing in more tax and regulatory risks."

Mamdani's spokeswoman, Dora Pekec, said the mayor-elect's affordability agenda is good for the economy, as the provision of childcare will help businesses, with employees willing to remain in their jobs and have a higher quality of life. "It's important that we have a high quality of life for New Yorkers so that they want to keep starting businesses here," Pekec said.

Mamdani defeated Andrew Cuomo, the former Democratic governor of New York, who ran as an independent. Billionaire investors Bill Ackman and Dan Loeb were among those who funded efforts to block his campaign.

Some of Mamdani's proposals have already drawn opposition, including a plan to open five city-owned grocery stores. "Just because he campaigned on it doesn't mean he'll be able to implement it," said David Schwartz, director of the New York Association of Grocery Stores.

Beyond New York, Democrats celebrated major wins in Virginia and New Jersey, where Abigail Spanberger and Mikie Sherrill were elected governors. Analysts said the results could signal renewed strength for the party ahead of next year's midterm elections.

"This was a very big wake-up call for Republicans on the midterms," said Jamie Cox, managing partner at Harris Financial Group.