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New York sweep by Israel critics shines light on a fraught issue for Democrats

News

New York sweep by Israel critics shines light on a fraught issue for Democrats
News

News

New York sweep by Israel critics shines light on a fraught issue for Democrats

2026-06-25 01:13 Last Updated At:01:20

NEW YORK (AP) — When Varun Venkatesh cast his ballot in New York’s primary this week, he thought about “a good litmus test for me as a voter.” He wanted to know what the candidates are doing for the Palestinian cause.

The 27-year-old Brooklyn resident decided to support Claire Valdez, who was backed by Mayor Zohran Mamdani, over Antonio Reynoso, another progressive who was the choice of the Democratic establishment, because she had “a clear and more consistent stance.”

Valdez triumphed in her congressional primary, as did two other insurgent candidates endorsed by Mamdani, and Israel was a key issue in each of the races. Now the question for Democrats is how many more voters like Venkatesh are out there as the party charts its path toward the November midterms and the next presidential election.

The war in Gaza began with Hamas' Oct. 7, 2023, attack on Israel, which responded with a yearslong counterattack that left more than 73,000 dead. About 1,000 have died since a ceasefire was reached in October, according to the Hamas-run health ministry that does not differentiate between civilian and combatant casualties.

Human rights groups and a United Nations commission have described Israel's actions as a genocide, a charge that's been rejected by Israeli Prime Minister Benjamin Netanyahu.

Democrats on the left — and even some conservatives — have ratcheted up pressure to suspend U.S. aid to Israel, a shift that's been shadowed by a rise in antisemitism across the political spectrum.

“The Israel question has become defining,” said Matt Bennett, who leads the centrist Democratic group Third Way and frequently criticizes progressives as jeopardizing outreach to independent voters. He argued that some in Mamdani’s camp have embraced “a new level of extremism,” warning that “Republicans are very good at weaponizing crazy ideas on the fringe against mainstream candidates.”

The schism over Israel, which widened during Joe Biden's presidency and undermined Kamala Harris' bid to replace him, remains an open wound. How Democrats attempt to stitch it closed will help define their future. A step in any direction risks alienating pieces of the party's unwieldy coalition when it's trying to unify around the mission of retaking control of Congress and set the stage for winning the White House again.

Mamdani is unapologetic in his effort to reshape the Democratic Party from the mayor’s office of the country’s largest city. He sharply criticized the American Israel Public Affairs Committee for defending what he calls “a status quo of immorality” in Gaza, and voters who celebrated his slate's victories on Tuesday night chanted “Free Palestine.”

The mayor, meanwhile, argues that New York should shape Democrats’ search for their national identity in the coming years.

“When does the race for 2028 begin?” Mamdani asked last week on a stage with his slate of candidates. “It starts now.”

Even for a party accustomed to conflicts between progressives and moderates, the divide over Israel has been especially intense. Although the U.S. alliance with Israel once had bipartisan support, the ascendancy of Israel's right wing, led by Netanyahu, strained those ties over the years. Then the war in Gaza shredded them.

Biden was denounced as “Genocide Joe” by pro-Palestinian supporters, who shifted their attention to Harris once she replaced him as the Democratic nominee for president two years ago.

“She was trying to do the right thing," said Jamie Harrison, who led the Democratic National Committee at the time. "It was a hard and awkward place to be in.”

Harrison said the war in Gaza helped cost Harris the state of Michigan, which has a sizable Arab American population. However, he doubts that it was a defining national issue then or now.

“It’s one thing to be in New York. But I can tell you that most places, including where I am in South Carolina, it’s not what people are talking about,” he said. “They are concerned about affording gas and groceries and housing.”

Harrison expects Democrats to look for middle ground in the future, which includes “still supporting Israel’s sovereignty” while calling for “reducing U.S. aid to Israel and changing the nature of the relationship.”

The issue puts a notable spotlight on Jewish Democrats who could become presidential contenders at the same time Mamdani wields his influence as the most prominent elected Muslim in U.S. politics.

When Pennsylvania Gov. Josh Shapiro’s name landed on Harris’ list of potential running mates, activists on the left cried foul over his support for Israel — potentially previewing pressures he would experience in a White House campaign.

Illinois Gov. JB Pritzker was once a billionaire donor to AIPAC, the pro-Israel lobbying group, and a national board member. He cut ties with the group after it aligned with Donald Trump, but the governor has continued to face questions about his past support.

Both Shapiro and Pritzker are seeking reelection this November before deciding on White House bids.

Finding middle ground has been difficult so far, as demonstrated by the primary in New York's 10th congressional district.

Brad Lander, the former city comptroller backed by Mamdani, successfully challenged U.S. Rep. Dan Goldman in the race.

Both candidates are Jewish, and both have criticized the Israeli government. But Lander says the war in Gaza is a genocide, and Goldman does not.

“Our party needs to admit that Joe Biden’s ‘hug Bibi’ strategy was a catastrophic mistake," Lander said in his primary victory speech. He added, “We cannot keep paying for Netanyahu’s wars with our tax dollars. Democratic voters are saying this, loud and clear.”

Ari Rassouli, a voter in the district, said the incumbent's views on Israel were “one of the many reasons that I didn’t like Dan Goldman.”

Describing the war as a genocide, she said “a candidate that is in support of that has no place in our democracy at all.”

While talking to reporters on Tuesday, Lander acknowledged that Israel was among the top issues along with affordability and immigration.

“I like talking to Jewish voters who feel anxiety about the times we live in and say, ‘I have these values, I want to treat everyone like they’re equal and with dignity and created in God’s image. How do we navigate the times we’re in?’” he said.

Associated Press writers Anthony Izaguirre and Larry Neumeister contributed to this report.

Democratic congressional candidate Claire Valdez speaks during a Get Out The Vote rally ahead of New York's primary election, Thursday, June 18, 2026, in the Brooklyn borough of New York. (AP Photo/Ryan Murphy)

Democratic congressional candidate Claire Valdez speaks during a Get Out The Vote rally ahead of New York's primary election, Thursday, June 18, 2026, in the Brooklyn borough of New York. (AP Photo/Ryan Murphy)

New York City Mayor Zohran Mamdani, celebrates with Democratic congressional candidate Darializa Avila Chevalier during an election night watch party Tuesday, June 23, 2026, in New York. (AP Photo/Seth Wenig)

New York City Mayor Zohran Mamdani, celebrates with Democratic congressional candidate Darializa Avila Chevalier during an election night watch party Tuesday, June 23, 2026, in New York. (AP Photo/Seth Wenig)

NEW YORK (AP) — Stocks rose on Wall Street Wednesday as falling bond yields and lower oil prices helped ease pressure on the market.

The S&P 500 climbed 0.4%. The Dow Jones Industrial Average added 384 points, or 0.8%, as of 1:05 p.m. Eastern. The Nasdaq composite rose 0.3%.

Technology stocks were mixed after two days of losses that weighed on the market. That also helped ease pressure on the market as gains broadened out to other sectors, including retailers and industrial companies.

Apple rose 0.8%, Amazon jumped 2.3% and Caterpillar rose 0.7%.

Nvidia fell 0.6% following a 4.1% drop on Tuesday. Micron Technology, which reports its latest results later Wednesday, fell 1.7% following its 13.2% plunge on Tuesday.

Google's parent company Alphabet rose 0.8%. The company is replacing Verizon in the Dow on Monday. Alphabet will become the fifth Magnificent 7 company to join the index. The others are Apple, Amazon, Microsoft and Nvidia.

Big Tech companies, especially those focused on artificial intelligence, have pricey values that give them more sway over the market's broader direction. That was the case on Tuesday when sharp losses for a few valuable tech companies pulled the market lower.

Oil prices continued slipping as the U.S. and Iran negotiate a possible end to their war. Brent crude, the international standard, fell 3.4% to $74.21 a barrel. It has been trading below $80 in recent days but is still above the roughly $70 per barrel it was trading at in late February before the war began. U.S. crude prices fell 3.6% to $70.55 a barrel.

Oil companies lagged the market. Exxon Mobil fell 2.3% and Chevron lost 2.1%.

Some of the bigger winners on Wall Street included homebuilders following approval of legislation beneficial to the industry. KB Home surged 17% and D.R. Horton jumped 7.1%.

Treasury yields mostly fell, removing more pressure from stocks. The yield on the 10-year Treasury fell to 4.41% from 4.50% late Tuesday. The yield on the 2-year Treasury eased to 4.15% from 4.16%.

Treasury yields are still elevated from earlier in the year, especially the 2-year Treasury, which more closely tracks anticipated action from the Federal Reserve. The central bank has signaled that it is considering raising its benchmark interest rate by the end of the year. Wall Street is forecasting at least one hike to interest rates by December, according to data from CME Group.

The Fed is worried about stubborn inflation, which had been rising throughout the year as tariffs raised the costs for a wide range of goods. A shock to energy prices because of the U.S. war with Iran worsened inflation. Gasoline prices surged and shipping costs rose. The impact is expected to linger even as oil and gasoline prices fall.

The central bank will get a fresh update on inflation Thursday, when its preferred measure for prices is released. Economists expect the Personal Consumption Expenditures price index, or PCE, to show that prices rose 4.1% in May. That would be the highest level in three years.

“Thursday’s PCE is set to take on greater importance for markets, especially since Federal Reserve Chair (Kevin) Warsh was emphatic in last week’s meeting about the central bank’s desire to achieve price stability,” wrote Rick Gardner, chief investment officer at RGA Investments, in a research note.

Gold prices fell 3%, and at one point slipped below $4,000 an ounce. Gold was above $5,000 an ounce earlier in the year. The precious metal is often seen as a barometer of the appetite for risk among investors, with more buying at times of increased anxiety and more selling as anxiety eases.

Markets were mixed in Europe and Asia.

AP Business Writers Chan Ho-him and Matt Ott contributed to this report.

Specialist Michael Pistillo, left, and trader Sean Spain work on the floor of the New York Stock Exchange, Tuesday, June 16, 2026. (AP Photo/Richard Drew)

Specialist Michael Pistillo, left, and trader Sean Spain work on the floor of the New York Stock Exchange, Tuesday, June 16, 2026. (AP Photo/Richard Drew)

Anders Opedal, President and CEO of Norway's Equinor, left, meets with specialist Patrick King on the floor of the New York Stock Exchange, after he rang the closing bell, Tuesday, June 16, 2026. (AP Photo/Richard Drew)

Anders Opedal, President and CEO of Norway's Equinor, left, meets with specialist Patrick King on the floor of the New York Stock Exchange, after he rang the closing bell, Tuesday, June 16, 2026. (AP Photo/Richard Drew)

Options trader Anthony Spina, center, works on the floor of the New York Stock Exchange, Tuesday, June 16, 2026. (AP Photo/Richard Drew)

Options trader Anthony Spina, center, works on the floor of the New York Stock Exchange, Tuesday, June 16, 2026. (AP Photo/Richard Drew)

A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 24, 2026. (AP Photo/Ahn Young-joon)

A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 24, 2026. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 24, 2026. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 24, 2026. (AP Photo/Ahn Young-joon)

A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 24, 2026. (AP Photo/Ahn Young-joon)

A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 24, 2026. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 24, 2026. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 24, 2026. (AP Photo/Ahn Young-joon)

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