Nasdaq Composite Index: +1.90% or +271.05 points to 14,532.55

Stocks fell on Tuesday as Federal Reserve Governor Lael Brainard signalled that the Fed may take more aggressive actions to tightening its monetary policy in response to red hot inflation. The Dow Jones Industrial Average dropped over 280 points, while the S&P 500 Index and Nasdaq Composite fell about 1.3% and 2.3%, respectively.

Brainard said Tuesday that the central bank needs to act quickly and aggressively to drive down inflation in written remarks for a Minneapolis Fed discussion. "Currently, inflation is much too high and is subject to upside risks," she said. "The [Federal Open Market] Committee is prepared to take stronger action if indicators of inflation and inflation expectations indicate that such action is warranted."

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  ): -1.26% or -57.52 points to 4,525.12

Dow Jones Industrial Average (DIA  ): -0.80% or -280.70 points to 34,641.18

Nasdaq Composite Index (QQQ  ): -2.26% or -328.39 points to 14,204.17

Spirit shares soar on JetBlue bid report:

Shares of Spirit Airlines (SAVE  ) jumped more than 22% on Tuesday after a report revealed JetBlue (JBLU  ) has made a bid to buy the budget carrier. Trading in Spirit was halted before market close, with shares at $26.93.

JetBlue's bid, reported by The New York Times, comes less than two month after Spirit and rival Frontier Airlines (ULCC  ) agreed to combine. JetBlue's $3.6 billion offer for Spirit is about 40% over Frontier's cash and share offer, according to NYT.

Apple to hold virtual WWDC starting early June:

Apple (AAPL  ) announced on Tuesday that its annual developers conference, Worldwide Developers Conference (WWDC), will begin on June 6. The tech giant will hold a launch even on the first day, as the company usually unveiling new products and software with a feature presentation from CEO Tim Cook.

The company is expected to reveal its latest iOS software update, likely called iOS 16. Typically software revealed at WWDC is distributed in beta form over the summer before its wide release alongside new iPhone models in the fall.

WWDC 2022 will be virtual and streaming on Apple's website, with the event running through June 10.

Elon Musk to join Twitter's board of directors:

Twitter (TWTR  ) announced the company will appoint Tesla (TSLA  ) CEO Elon Musk to its board on Tuesday, one day after he disclosed a significant stake in the social media company.

The move may temporarily block Musk from proposing a takeover bid, which analysts have speculated may occur after he revealed his purchase of about $3 billion Twitter shares on Monday.

"Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board," Twitter CEO Parag Agrawal said in a tweet Tuesday. "He's both a passionate believer and intense cristic of the service which is exactly what we need on Twitter, and in the boardroom, to make us stronger in the long-term."

Musk's term is set to expire in 2024, according to a U.S. Securities and Exchange Commission (SEC) filing. Musk also cannot be the beneficial owner of more than 14.9% of Twitter's common stock outstanding.

Here's how benchmarks started trading after market open:

S&P 500 Index: -0.28% or -12.78 points to 4,569.86

Dow Jones Industrial Average: -0.26% or -90.43 points to 34,831.45