Wall Street is on edge as Zohran Mamdani, a 33-year-old democratic socialist and political outsider, moves a step closer to the New York City mayoralty. After defeating former Governor Andrew Cuomo in a shocking Democratic primary win on Tuesday, Mamdani鈥檚 candidacy is now seen as a serious threat by financial elites 鈥 many of whom are already considering relocation or investment pullbacks. 鈥淭his will be the end of New York City as we know it,鈥 said Michael Nelson, a Wall Street recruitment executive, echoing the fears of high-income clients earning over $1 million annually. As reported by Bloomberg, the anxiety has already translated into real-time market consequences. Property-related stocks such as Flagstar Financial Inc. fell by up to 6.7 per cent midweek, while other major real estate trusts 鈥 Empire State Realty Trust, SL Green Realty, and Vornado Realty Trust 鈥 also took a hit. Despite ideological divides, Mamdani鈥檚 grassroots campaign has gained traction across class and racial lines, bolstered by a savvy online strategy and star endorsements. On Wednesday, the candidate appeared in a viral Instagram video alongside model Emily Ratajkowski, who sported a 鈥淗ot Girls for Zohran鈥 t-shirt while urging voter turnout. Mamdani鈥檚 messaging, which blends economic populism with progressive cultural appeal, has resonated with younger and working-class voters disillusioned with New York鈥檚 entrenched political structure. 鈥淥ur message is simple,鈥 Mamdani said in his post-victory speech. 鈥淎 life of dignity should not be reserved for a fortunate few.鈥 Among his most talked-about proposals are free childcare, public grocery stores, fare-free public buses, and aggressive rent controls 鈥 all to be funded through higher taxes on the city鈥檚 wealthy residents and corporations. He has also floated a controversial $70 billion municipal debt plan, though such fiscal moves would require approval from state officials, including Governor Kathy Hochul, who has already voiced opposition. Mamdani鈥檚 rise has sent a ripple of panic through New York鈥檚 donor class. Billionaire hedge fund manager Dan Loeb posted on X (formerly Twitter), 鈥淚t鈥檚 officially hot commie summer,鈥 referring to Mamdani鈥檚 upset win. Former New York Governor Andrew Cuomo, 67, was backed heavily by business magnates such as Michael Bloomberg, Bill Ackman, and Steven Roth of Vornado Realty. His campaign committee, 鈥淔ix the City,鈥 amassed an unprecedented $25 million war chest. Yet, this establishment coalition failed to prevent Mamdani鈥檚 ascent. Cuomo鈥檚 campaign leaned heavily on negative advertising targeting Mamdani and offered few fresh solutions to the city鈥檚 mounting issues, including transit safety and the rising cost of living. Though he resigned as governor amid sexual harassment allegations 鈥 which he denies 鈥 Cuomo retained endorsements from high-profile figures like former President Bill Clinton. He is now reportedly considering continuing his run as an independent. Mamdani, by contrast, gained support from progressive political leaders including Alexandria Ocasio-Cortez and Bernie Sanders. His campaign has focused on mobilising tens of thousands of volunteers who canvassed door-to-door and dominated digital platforms. Still, Wall Street鈥檚 discomfort may be premature. Any attempt by Mamdani to overhaul tax policy would require state-level cooperation, making sweeping reform unlikely without broader legislative alignment. According to Kathy Wylde, a seasoned intermediary between the city鈥檚 business community and policymakers, Mamdani鈥檚 ideology may prove polarising for employers and large taxpayers, even if it galvanises younger voters. Not everyone in finance is outright dismissive. 鈥淲hile we might disagree on certain issues, we should always be hopeful that Mamdani 鈥 if he ends up being elected mayor 鈥 can unite the city to address its critical education, public safety, housing and economic development needs,鈥 said Ralph Schlosstein, former head of Evercore Inc. But some financiers are already taking drastic measures. 鈥淚鈥檝e talked to hedge fund guys who鈥檝e told me they鈥檝e got a foot out the door,鈥 said Eric Rosen, formerly of JPMorgan. 鈥淚 left New York City eight years ago because I didn鈥檛 like the way the city was being run. I sold my Park Ave co-op and it鈥檚 now down 25 per cent. My house in Florida is up 250 per cent. The market has spoken.鈥 The November general election will now determine whether Mamdani can translate his primary momentum into citywide leadership. Potential rivals include Republican Curtis Sliwa and current Mayor Eric Adams, who is running independently following corruption allegations. Meanwhile, the city鈥檚 financial elite must decide whether to challenge Mamdani鈥檚 momentum, adapt to it 鈥 or simply walk away from a city in political transition. Get Latest News Live on Times Now along with Breaking News and Top Headlines from Companies, Business Economy and around the world.