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👨‍⚖️ Reddit Sues Anthropic

+ US Hiring Cools to Slowest Pace in Two Years, ADP Data Show

June 04, 2025

Good afternoon! Tinder is testing a height filter—but only for paying users—and it’s already sparking outrage. The new feature lets subscribers screen matches by height, prompting backlash over “heightism” and reigniting debates around shallow dating preferences.

Hinge already has a height filter, but Tinder’s move hit differently, especially among self-proclaimed short kings who feel excluded. While Match Group says it’s just testing ways to improve the user experience, critics argue it’s a tone-deaf move in a dating world already packed with filters.

MARKETS

*Stock data as of market close*

  • Markets barely moved Wednesday, with the S&P 500 closing flat in its tightest range since February. The Nasdaq ticked up 0.3%, while the Dow slipped 92 points, ending its four-day streak.

  • A weak ADP report showing just 37,000 new jobs in May stirred rate-cut hopes. Services data also disappointed, sending bond yields lower as investors weighed trade tensions and Fed pressure.

STOCKS
Winners & Losers

What’s up 📈

  • Guidewire Software popped 16.44% thanks to strong earnings and a 22% revenue jump for the insurance software provider. ($GWRE)

  • HealthEquity climbed 8.96% after the company raised its fiscal forecast. ($HQY)

  • Reddit jumped 6.68% after announcing it is suing AI startup Anthropic for scraping its content. ($RDDT)

  • ON Semiconductor rose 6.14% following bullish comments from its CEO about rebounding chip demand. ($ON)

  • Thor Industries advanced 4.39% after beating earnings expectations for the third quarter. ($THO)

What’s down 📉

  • Asana plunged 20.31% after issuing weak guidance for the second quarter. ($ASAN)

  • Chart Industries dropped 9.40% following news of its all-stock merger with Flowserve. ($GTLS)

  • Flowserve fell 6.17% after agreeing to merge with Chart Industries. ($FLS)

  • CrowdStrike slipped 5.77% after forecasting lower-than-expected Q2 revenue. ($CRWD)

  • Dollar Tree slid 8.37% after warning of a potential 50% earnings decline, citing tariff pressure. ($DLTR)

  • Tesla lost 3.55% as European sales data revealed a deep slump in key markets. ($TSLA)

  • Constellation Energy sank 4.31% after a downgrade from Citigroup, which said its Meta deal lacked a premium. ($CEG)

LEGAL
Reddit Sues Anthropic, Says AI Company Exploited User Data

Reddit’s legal team just smashed the glass on its emergency option: suing Anthropic. The social media platform filed a lawsuit in San Francisco alleging the AI startup scraped Reddit’s treasure trove of user-generated content more than 100,000 times—after saying it stopped. Anthropic, meet the wrath of the internet’s loudest town square.

Reddit isn’t anti-AI. In fact, it’s struck multi-million-dollar licensing deals with Google and OpenAI to let them train their models on Reddit content—the kind of messy, human, highly contextual dialogue that AI craves. But according to Reddit, Anthropic skipped the “please” and went straight for the data buffet, using user conversations without paying or asking.

The Stakes: Billions in AI Value, One Massive Archive

Anthropic, backed by Amazon and known for its chatbot Claude, is being accused of exploiting personal user data in violation of Reddit’s policies. The lawsuit highlights a deeper debate unfolding across tech: Should AI models be able to freely learn from public forums? Reddit’s answer: only if you cut a check.

Reddit claims that while OpenAI and Google played by the rules, Anthropic tried to have it both ways—publicly touting ethical AI while quietly harvesting user posts like a rogue data farmer. Anthropic has denied wrongdoing and says it will fight the allegations.

The Bigger Picture: Lawsuits Are the New API Key

Reddit’s suit is just the latest in a growing stack of legal battles over AI training data. Universal Music is suing over song lyrics. The New York Times is suing over articles. And now Reddit joins the fray, arguing that its platform’s “humanity” is being mined for billions—without a dime going back to the users who made it all possible.

Reddit stock ($RDDT) surged 6.6% Wednesday on the news, even as the company remains down 28% YTD. Investors seem to like Reddit drawing a line in the sand—and possibly cashing in later with a licensing deal or court win.

Bottom Line: Reddit is tired of being the unpaid AI tutor. The internet might be open—but Reddit says that doesn’t mean “open season.”

NEWS
Market Movements

JOBS
US Hiring Cools to Slowest Pace in Two Years, ADP Data Show

After months of hoping the labor market would prove resilient, the latest ADP report just rang a caution bell loud enough to echo through Wall Street—and the White House. U.S. private-sector employers added just 37,000 jobs in May, the weakest print in over two years and a massive miss compared to economists’ expectations of 110,000.

The hiring freeze hit sectors like business services, education, and health, while the Northeast region shed the most jobs. Even small and large businesses—usually the anchors of job growth—cut back. Leisure, hospitality, and finance eked out modest gains, but the big picture? Employers are pumping the brakes.

Powell Under Pressure—Again

Within minutes of the report, Donald Trump was back on Truth Social with his go-to demand: cut rates. Calling Fed Chair Jerome Powell “unbelievable,” Trump insisted that the ADP data should force the Fed to act. Powell, for his part, remains unmoved. The Fed reiterated last week that its decisions are based on data, not presidential pressure.

That said, markets are starting to price in cuts. Treasury yields dropped on the report, and the S&P 500 climbed, as investors bet that weak hiring and tariff uncertainty could finally push the Fed into easing later this year.

Wait, but People Are Still Getting Paid?

Despite the hiring dip, paychecks aren’t shrinking. ADP’s data—drawn from over 25 million workers—showed that job switchers enjoyed a 7% pay bump, while job stayers took home 4.5% more. So even as hiring slows, wage growth is hanging tough, adding yet another twist to the Fed’s inflation puzzle.

Bottom Line: The job market isn’t falling apart, but it’s definitely fraying at the edges. Friday’s official jobs report will offer more clarity—but if ADP’s miss is a preview, Powell might soon be hearing “cut rates” from more than just his phone notifications.

Calendar
On The Horizon

Tomorrow

Thursday brings fresh jobless data, and while first-time claims have been climbing at a manageable pace, continuing claims are telling a different story. More Americans are staying on unemployment longer, hinting that landing a new gig might be getting tougher.

On the earnings front, a wide mix of names are set to report. Keep an eye on Broadcom, Lululemon, Cracker Barrel, DocuSign, Ciena, and Victoria’s Secret as investors look for clues on spending trends and sector strength.

NEWS
The Daily Rundown

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