Wall Street’s profits for the first half of the year were nearly 80% higher than last year. That’s according to a report from state Comptroller Tom DiNapoli.

DiNapoli reported that Wall Street’s $23.2 billion in pretax profits for the first half of 2024 were a 79.3% increase over the same period last year. He said the increase, which he described as “dramatic” was buoyed by securities trading, underwriting and selling. The report indicated that annual profits are on pace to close out the year in a significantly stronger spot than 2023.

DiNapoli told Spectrum News 1 that New York’s place at the center of the financial world means that when Wall Street does well, New York does well.

“That translates into significant tax revenue that helps the state and the city balance their respective budgets,” he said of the bump.

When it comes to this year’s climb, DiNapoli said a number of factors are at play.

“The economic climate has been strong and pretty positive for the markets, we’re obviously coming off a period of significant infusion of money from Washington to stimulate spending,” he said. “The fact that the feds have cut the interest rate was a strong sign to the markets and Wall Street that the economy was in good shape, inflation is cooling.”

He pointed out that while they aren’t the massive spikes seen as New York rebounded from the pandemic, profits are higher than pre-pandemic levels.

“I’d say Wall Street is probably settling into a more normal profit pattern and my hope is that that will be sustainable and consistent over time,” he said. “New York depends so much on Wall Street so its great when there are highs and not so great when there are lows, so I prefer when its going up at a slow and steady rate and I hope that’s the pattern we are starting to see now.”

DiNapoli said the revenue generated for the state could give the governor and the Legislature a leg up as they head into next year’s budget process with a $2.3 billion gap.

“Right now in the fall of 2024, I’m anticipating that there could be a nice upside as the legislature and the governor start the serious negotiations on the budget after the first of the year,” he said.

He stressed that this is just the first half of the year, there is still time for changes and fluctuations in the coming months, including as a result of elections at the federal level.