What Does Mamdani’s NYC Win Mean For Wall Street?

Good morning! Here is the latest in trending:

Stretched valuations: The market pullback has gone global following warnings from Wall Street CEOs. Bitcoin (BTC-USD) has also entered bear market territory, while ether (ETH-USD) erased its YTD gains.

Day 36: The U.S. government shutdown has become the longest on record, however, odds suggest the end could be near.

New missile crisis: It’s not Cuba this time. Russia might provide hypersonic weapons to Venezuela, warning that “the Americans may be in for some surprises.”

Results are in from NYC’s high-stakes election, with Democratic socialist Zohran Mamdani set to become mayor of the nation’s largest city and financial capital of the world. He already beat out challenger Andrew Cuomo in the Democratic primaries, prompting the latter to run on an independent ticket. Republicans also urged votes for Cuomo in the run-up to the election, with GOP candidate Curtis Silva far behind in the polls.

Economic platform: Mamdani has focused on “affordability” and “inequality,” with policies that include a rent freeze, affordable housing, and a $30 minimum wage by 2030. Other proposals involve the creation of subsidized city-owned grocery stores, providing free city bus service and universal childcare. To fund the social initiatives, Mamdani supports increasing corporate taxes and raising the rates paid by high-income individuals. 1% of NYC’s earners pay nearly half of all its taxes

Notable figures from the financial industry in New York City had fought his election, forming PACs and pouring millions of dollars into anti-Mamdani efforts. They warned of risks to capital flight, a deteriorating business and real estate environment, as well as unsustainable fiscal plans, but some now seem ready to work with the new mayor. “@ZohranKMamdani, congrats on the win. Now you have a big responsibility,” Pershing Square’s (OTCPK:PSHZF) Bill Ackman wrote on X. “If I can help NYC, just let me know what I can do.”

Wall Street: As mayor, Mamdani does not have the power to regulate financial institutions or even raise corporate taxes. Those are set at the federal and state level, and will need the backing of legislatures, though he can steer city spending and procurement away from Wall Street interests. Many entrenched players that were against Mamdani will still stick around, though there are parts of Wall Street that have already moved out of NYC, like Elliott Management, Icahn Capital and Ark Invest. COVID accelerated the trend that has only continued due to lower taxes, remote work, and business-friendly atmospheres elsewhere. JPMorgan’s (JPM) headcount in Texas has even surpassed its New York workforce, while the SEC just formally approved the Texas Stock Exchange. (42 comments)

Here’s the latest Seeking Alpha analysis

Fiserv Crash Lessons: 5 Popular Stocks With Quant Sell Ratings

One Of The Best Energy Opportunities I’ve Seen In My Career – And Nobody Cares

Billionaire Warns The Coming AI Shockwave Could Reshape The Market

The 4 “Ingredients” For A Major Stock Market Correction Have Arrived

Alphabet: Don’t Chase Now, Even If You Missed The Ride

What else is happening…

UPS (UPS) cargo plane crashes after takeoff from Louisville.

Novo Nordisk (NVO) accepts U.S. Medicare obesity drug deal.

Pinterest (PINS) sinks as outlook overshadows user growth.

AMD (AMD) slips despite results and guidance beating estimates.

Bankrupt First Brands sues founder over alleged misconduct.

IBM (IBM) to lay off ‘single-digit percentage’ of workforce in Q4.

Uber (UBER) slides after guidance curbs investor enthusiasm.

Supermicro (SMCI) tumbles on revenue miss, mixed outlook.

Google (GOOGL) wins DOJ approval for $32B Wiz acquisition.

No government figures, but data suggests job openings are dropping.

Today’s Markets

In Asia, Japan -2.5%. Hong Kong -0.1%. China +0.2%. India closed.
In Europe, at midday, London flat. Paris -0.3%. Frankfurt -0.7%.
Futures at 6:30, Dow flat. S&P -0.2%. Nasdaq -0.4%. Crude +0.3% to $60.73. Gold +0.2% to $3,968.80. Bitcoin -2.7% to $101,638.
Ten-year Treasury Yield unchanged at 4.09%.

On The Calendar

Companies reporting today include Qualcomm (QCOM) and McDonald’s (MCD).

See the full earnings calendar on Seeking Alpha, as well as today’s economic calendar.