The attack took place around 2 a.m. Sunday close to Chabad headquarters in Crown Heights, Brooklyn.
The 33-year-old victim was taken to the hospital in stable condition.
A suspect identified as Vincent Sumpter, 22, was taken into custody at the scene.
An eyewitness says in the minutes before the attack, Sumpter approached several people.
"He was looking for trouble basically, and he continued harassing other people passing by and then physically threatened another group, you know, yelling 'do you want to die?' and 'Free Palestine' and all that. Then he became aggressive and you know, withdrew his knife," said the witness.
Sumpter faces hate crime and assault charges.
A Chabad rep says if the victim had been stabbed just a few inches from where the knife landed, the wound would have been much more serious.
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