Summary

• The Iran conflict and resulting disruptions to the Strait of Hormuz sharply constrained global oil supply, driving a surge in energy prices even as the headline Consumer Price Index appeared stable.
• During the first quarter, the Harbor Capital Appreciation Fund returned -10.94%.
• Snowflake's shares declined amid slowing product revenue growth and rising competition in AI-data platforms.
• The Harbor Capital Appreciation Fund sold the position in ServiceNow as growth expectations moderated, and software exposure was reassessed.
• In the face of so much uncertainty, the growth outlook for corporate profits over the balance of the year remains healthy, even as financial conditions have become more volatile.

In the face of so much uncertainty, the growth outlook for corporate profits over the balance of the year remains healthy, even as financial conditions have become more volatile. Fundamentals are proving resilient in the face of