Rubio reassures Europe while U.S. CPI calms investors

U.S. Secretary of State Marco Rubio provided comforting words for Europe on Saturday at the Munich Security Conference.

“We want Europe to be strong,” he said. “We believe that Europe must survive, because the two great wars of the last century serve, for us, as history’s great reminder, that ultimately, our destiny is, and will always be, intertwined with yours.”

That’s a stark contrast from U.S. Vice President JD Vance’s criticism of European democracy during the previous year’s security conference, and his observation then that a schism had emerged between the continent and America.

“The retreat of Europe from some of its most fundamental values, values shared with the United State of America,” Vance said.

German Foreign Minister Johann Wadephul told CNBC’s “Squawk Box Europe” that Rubio’s speech emphasized the importance of the U.S. and Europe working together again — as both successfully did so in the past.

Elsewhere, the U.S. consumer price index on Friday stateside also provided some balm. Consumer inflation for January rose 2.4% on a year-on-year basis, lower than the 2.7% in December, and returning to where it was after President Donald Trump fired off tariffs globally in April 2025. Core CPI came in at 2.5%, the lowest since April 2021. Economists were expecting 2.5% for both figures.

“This should be welcome news for markets, and the presumptive incoming Fed Chair Kevin Warsh,” said Phil Blancato, Osaic chief market strategist. “This is only one month’s worth of data, but if the trend continues it should pave a path for lower interest rates and reined in inflation.”

U.S. markets, however, on Friday made only tentative steps in either direction, perhaps still unsure of where to move amid uncertainty about the effects of AI on companies. All major indexes ended the week in the red. U.S. markets will be closed Monday for Presidents’ Day.

— CNBC’s Sean Conlon, Pia Singh and Jeff Cox contributed to this report.

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