US stocks will stretch even higher

The US stock market is expected to rise to near record levels, CNR Chief Executive Officer Larry Fink told CNBC on Friday.

US stocks lead the rest of the world because "we deserve it," Fink added in "Squawk Box", saying America had the best companies.

Fink said many of his clients and hedge funds were taking risks. However, he believes that such a decision is a mistake and advised investors to stay invested in shares.

The co-founder of the world's largest fund manager said on CNBC in mid-April that he thought the global equity rally was yet to continue.

However, the S & P 500 ended up losing ground in May, registering a drop of about 6.6% for the month and a four-month defeat following the defeat of the US-China trade negotiations. .

In June, the US Federal Reserve opened the door to easier monetary policy. The S & P 500 jumped nearly 7%, its best performance in June since 1955.

The stock rally continued in July, with expectations of Fed rate cuts increasing at the July 30-31 central bank meeting. The S & P 500 was less than 1% of last week's record close.

Markets believe that a Fed rate cut in July is a lock, with a 0.25% reduction in ratings to around 55% and a more aggressive downside possibility of 0.5% to around 45% .

Fink said on Friday that he thought the Fed would be conservative, calling the central bankers "progressives," preferring several 0.25% cuts to less significant operations.

Shortly before Fink's appearance at CNBC, BlackRock announced quarterly earnings below estimates, while investment advisory and securities lending revenue fell and costs increased. However, the company closed the quarter with badets under management of $ 6.8 trillion, up from $ 6,300 billion a year ago.

– Reuters contributed to this report.