Here is a comprehensive 1000+ word report on the top stock market news, stocks to watch, and expected market movement for today, September 3rd, 2024:

Stock Market Report: September 3rd, 2024

Top Stock Market News

1. Stock Market Cools Down as Investors Brace for Crucial Data Releases

The stock market kicked off September on a turbulent note, with the major indices opening sharply lower on Tuesday. The Dow Jones Industrial Average plunged over 700 points, or 2.34%, while the S&P 500 and Nasdaq Composite tumbled 3.1% and 4.3%, respectively, as of mid-morning trading. This broad-based sell-off comes in the wake of the Labor Day holiday weekend and sets the stage for a potentially volatile month ahead.

The primary catalyst behind the market's steep decline is the growing concern over persistent inflation and the prospect of more aggressive interest rate hikes by the Federal Reserve. Investors are anxiously awaiting the release of August's consumer price index data, scheduled for later this week, which could significantly impact the Fed's monetary policy decisions at its upcoming meeting.

2. August Jobs Report Fuels Rate Hike Fears

Adding to the market's jitters is the recently released August jobs report, which showed a surprisingly robust labor market. The U.S. economy added 315,000 new jobs last month, defying expectations of a slowdown and complicating the Fed's efforts to cool down the economy without triggering a recession.

The strong employment data has reignited fears that the central bank may need to raise interest rates even higher and maintain a hawkish stance for an extended period to rein in stubbornly high inflation. Market participants are now bracing for the possibility of another substantial rate hike at the Fed's September meeting, with some speculating that a full percentage point increase could be on the table, albeit unlikely.

3. Manufacturing Data in Focus

Investors will also closely monitor the release of manufacturing data later today, as it could provide further insights into the health of the U.S. economy. Any signs of weakness or strength in the manufacturing sector could influence market sentiment and expectations regarding the Fed's future policy moves.

Top Stocks to Watch

1. Diversified Energy Company PLC (DEC)

Diversified Energy Company PLC (DEC), an owner and operator of natural gas and oil wells from the Appalachian Basin, is a top value stock to watch today. With a Zacks Rank #1 (Strong Buy) and a consensus estimate revision trend that has increased over the past two months, DEC presents an attractive investment opportunity for value-focused investors.

2. Amazon (AMZN)

E-commerce giant Amazon (AMZN) is another stock that investors should keep an eye on in September. Despite the broader market sell-off, Amazon's shares have shown resilience, backed by the company's strong fundamentals and growth prospects. As one of Warren Buffett's top holdings, Amazon is considered a sensational buy by many analysts, making it a compelling choice for long-term investors.

3. Sarepta Therapeutics (SRPT)

Sarepta Therapeutics (SRPT), a biopharmaceutical company focused on developing precision genetic medicine, is garnering attention ahead of a potential readout for its EMBARK trial. Bank of America has a "buy" rating on SRPT stock, with a price target of $186, citing confidence in a positive trial outcome and the FDA's active engagement in the regulatory process.

Stock Market Expected Movement

Based on the current market conditions and the looming economic data releases, analysts anticipate continued volatility in the stock market in the near term. The trajectory of the major indices will likely be influenced by the August consumer price index report, as well as the manufacturing data scheduled for release today.

If the inflation data comes in hotter than expected, it could fuel further selling pressure, as investors brace for more aggressive rate hikes by the Fed. Conversely, a cooler-than-anticipated inflation reading could provide some relief to the markets, at least temporarily.

Additionally, any signs of weakness in the manufacturing sector could exacerbate concerns about an impending economic slowdown, potentially weighing on stock prices further. However, resilient manufacturing data could alleviate some of the market's worries and support a potential rebound.

Overall, market participants should prepare for heightened volatility in the coming days, as the stock market digests the influx of crucial economic data and adjusts its expectations accordingly. Investors are advised to remain vigilant, exercise caution, and consult with financial advisors to navigate the turbulent market conditions effectively.