The 10-year Treasury yield ( US10Y) could retest 5% and potentially hit 5.5% if inflation meaningfully picks up pace, and such moves would “shock” the equity market, Fink told CNBC on Thursday. “There are some very large inflationary pressures that we all have to be aware of,” he said, attending the World Economic Forum in Davos, Switzerland.

CEO Larry Fink is cautiously optimistic on the markets. He's optimistic on growth prospects, but warned Thursday that new inflationary pressures could negatively impact stocks.