Good morning. In this edition:

• 📉 US GDP falls for the first time in three years
• 🤔 Google, or Duolingo?
• 🏥 “Text neck syndrome”

Ready, Set, Go: Today’s news should be a ~4.29-minute read (1,141 words).

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"The more you extend kindness to yourself, the more it will become your automatic response to others."

–Wayne Dyer (1940-2015)

The US economy contracted in the first three months of 2025, as consumer spending slowed and businesses rushed to stock up on imports ahead of new tariffs, according to Commerce Department data published yesterday.

America’s gross domestic product (GDP)—the value of all goods and services produced across the economy—fell at a 0.3% annual rate in Q1, marking the US economy’s first contraction since Q1 2022.

Unpacking the data

The main driver of the first-quarter GDP figures was President Trump’s expansive new tariff plan, which began to come into effect in Q1.

• America’s net exports, or the difference between imports and exports, subtracted ~5 percentage points from the top-level GDP figure, as businesses drastically increased their imports of foreign goods ahead of tariffs.
• It represents the largest quarterly GDP drag from net exports on record dating back to 1947.

Elsewhere, consumer spending rose by 1.8%—down from 4% the previous quarter, and the smallest increase since Q2 2023—while federal government spending fell 1.4% amidst a DOGE-led cutting effort.

In other economic news…The Conference Board’s index declined for a fifth consecutive month in April to reach its lowest level since May 2020, largely driven by falling expectations for the future—while Microsoft yesterday reported better-than-expected top and bottom line results, led by its Azure cloud business, and Meta also reported stronger-than-anticipated results.

Looking ahead: The April jobs report—the first "hard data" to cover the period after President Trump announced aggressive global tariffs—will be published tomorrow morning. Also on the earnings docket this week: Apple and Amazon, which report results later today.

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More like speak no evil: Google this week released a trio of AI-enhanced tools aimed at helping people learn to speak a new language in a more personalized way.

1. Tiny Lesson, which helps users quickly learn specific phrases they need in the moment. After a user describes a situation they’re in, Gemini helps them learn vocabulary and grammar to describe a problem to locals.
2. Slang Hang, which helps users sound less formal and more like a local by teaching them how to lose the formalities and adopt a more colloquial way of speaking.
3. Word Cam, where users can pull out their cameras to learn new words based on their surroundings, with Gemini detecting objects in the photos.

Google says that the idea behind these tools is to test how AI can be used to make independent learning more dynamic and personalized by promoting custom, bite-sized lessons on the go.

How the turned tables: While Google is taking aim at Duolingo, the language app is trying its best to emulate larger tech giants. The company with an unhinged owl as its mascot this week announced plans to become “AI-first,” which CEO Luis von Ahn says will involve phasing out contractors that can be replaced with AI, only hiring new workers if AI can’t do their job, and looking for AI use in performance reviews and hiring.

Working to monetize content for internet strangers has never been more popular. Online creator jobs have grown 7.5x since 2020, according to a newly released recurring study, published every four years by the Interactive Advertising Bureau and written in conjunction with Harvard Business School professor emeritus John Deighton.

Per the report:

• The number of people in the US with full-time equivalent jobs as digital creators increased from 200,000 in 2020 to 1.5 million in 2024.
• Creators are now the largest and fastest-growing segment of the 28.4 million internet-dependent jobs in the US, while creator media revenue is growing 5x the rate of the traditional media sector.

Decide to change careers in the morning, creating by lunch

The trend is being driven in part by the availability of platforms like Beehiiv or Substack, which streamline the process of launching and monetizing online publications. And apps like ByteDance's CapCut or Instagram's Edits also enable creators to quickly edit and publish videos.

The desire is there: 57% of Gen Z and 41% of adults overall would like to put on makeup while telling stories to a camera be influencers, according to 2023 Morning Consult data.

Newsletter callback: The internet-supported economy accounts for 18% of US GDP, up from 2% in 2008. It’s now the leading driver of GDP growth.

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Atlanta Falcons defensive coordinator Jeff Ulbrich isn’t the only parent dealing with their kid’s costly mistake in recent days.

“Grey, Orange on Maroon, No. 8,” a prized painting by Mark Ruthko valued at up to $57 million, was damaged by a child’s scratch while on display last month at a museum in the Netherlands.

• In a statement, the Museum Boijmans Van Beuningen in Rotterdam said the incident occurred during an “unguarded moment,” with the painting sustaining superficial-but-visible damage in its lower section.
• The museum also said it’s currently researching the next steps for treating Ruthko’s work, and it expects the painting will be able to go on display in the future.

Bull in a china shop? More like kid in a museum. The Rotterdam incident comes less than a year after a 3,500-year-old jar was accidentally smashed into pieces by a four-year-old boy on a trip to an Israeli museum—though there were no hard feelings.

BUSINESS & MARKETS

• 📊 US markets closed mixed (S&P: +0.1%; Dow: +0.3%; Nasdaq: -0.1%); the S&P extended its winning streak to seven days. | Novo Nordisk announced it’ll offer its weight loss drug Wegovy to cash-paying customers through telehealth providers Hims & Hers Health, Ro, and LifeMD.
• 🍏 Apple willfully violated a 2021 injunction that came out of the Epic Games case, a judge said in a new court filing.
• 📝 Elon Musk said that going forward, he plans to work just one or two days a week on DOGE. | Tesla's board opened a search for a CEO to succeed Musk, according to a new Wall Street Journal report.

SPORTS, MEDIA & ENTERTAINMENT

in partnership with NoNetz

• 🏒 Seattle was selected to host a Professional Women's Hockey League (PWHL) expansion team starting this fall; the league now features eight teams.
• 🏆 San Antonio guard Stephon Castle was named NBA Rookie of the Year, joining Victor Wembanyama as the second straight Spur to win the award.
• 🎤 Lorde announced Virgin, her fourth studio album, is coming later this year. | Barbara Streisand is releasing a new duet-filled album featuring Bob Dylan, Ariana Grande, Hozier, and more.

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SCIENCE, SPACE & EMERGING TECH

• 🌲 Spruce trees actively anticipate and respond to solar eclipses by synchronising their bioelectrical signals hours ahead of time in a forest-wide phenomenon, per a new study.
• 💉 Which arm gets vaccinated could play a role in how effectively your immune system responds to the shot, according to new research.
• 🦖 Lab-produced T. rex “leather” isn’t the real deal, contrary to “misleading” public announcements, some scientists say.

US, WORLD & POLITICS

in partnership with Niphtio

• 🤝 Ukraine and the US signed an economic deal for mineral rights yesterday, which Trump officials hailed as a step towards ending the Russia-Ukraine war.
• 🏫 The Supreme Court heard arguments in a case over whether Oklahoma can use state funds to run America’s first religious charter school.
• 🏛️ A Senate bid to reject President Trump’s global “Liberation Day” tariffs fell short in a 49-49 vote yesterday; three Republicans voted with Democrats in support of the measure.

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☝️ The world’s tallest and smallest dogs had a playdate in Ohio earlier last month; Reggie, a Great Dane from Idaho, and Pearl, a Chihuahua from Florida, have nearly three feet separating their heights—but hit it off immediately.

🤔 Did You Know? “Text neck syndrome,” AKA tech neck or smartphone neck, is a relatively new medical term that describes neck pain and damage due to looking down at electronic devices for prolonged periods.

📰 Worth a Read: Coming up: Rights for "conscious" AI

🖱️ Clickbait: What your earwax can reveal about your health

Yesterday, we covered a series of wide-ranging higher education reforms proposed this week by House Republicans as part of a wider legislative package aimed at carrying out President Trump’s agenda.

❓ Our question to you: How do you feel about congressional Republicans’ new plans for higher education reform?

• Support: 30%
• Oppose: 54%
• Unsure/other: 16%

Click here to read some of the most thoughtful longform responses.

+Note on sample size: We received 2,194 votes and 226 longform responses.

🐌 A miniscule new species of snail was recently discovered by researchers in Southeast Asia; their shells' unusual and unique designs prompted scientists to name the mollusk after Pablo Picasso.

🐻 A Connecticut family was shocked to find an unexpected visitor on their backyard playground—a black bear with a certain affinity for the slide.

🏆 Talk about a hidden talent...Cooper Wallace, AKA 'Seagull Boy,' recently won his second consecutive European Gull Screeching Championship in De Panne, Belgium.

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Algeria