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The pullback in big tech stocks could be a good buying opportunity, according to BlackRock’s Rick Rieder. When asked on CNBC’s ” Closing Bell ” Monday whether he would be a buyer on the dip of the Nasdaq Composite index, Rieder replied, “One hundred percent.” “Particularly some of the big cap names,” he said prior to the market close. “I would love to buy them at cheaper multiples.” The Nasdaq lost 0.38% on Monday as big tech names continued to sell off. .IXIC 1Y mountain Nasdaq Composite Index Rieder, BlackRock’s chief investment officer of global fixed income, said he would also employ options strategies for some downside protection. He sees a long runway of growth ahead, pointing out that the big tech companies are oligopolies in businesses that are actually increasing productivity. “These companies are doing exceedingly well and the consumer is benefiting from their success,” Rieder said. “I think it’s a pretty powerful point in time.” Meanwhile, he expects Treasury yields to stabilize — and he thinks long rates can move a bit higher from here. Bond yields move inversely to prices. Treasury yields have been moving higher as traders anticipate the Federal Reserve will adopt a slower pace on interest rate cuts. On Monday, the 10-year Treasury yield touched its highest level since November 2023. The benchmark yield ended the day at about 4.79%. “Once you get to five [percent on the 10-year Treasury yield], whether it is optically a ceiling or not, there is some buying that will come in,” Rieder added. “So I don’t think we’re going much higher.” He also thinks the equity market will have a “decent” year and could see a 15% return for 2025.
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