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Stock rally may be short lived: Expert

With China and the Federal Reserve injecting uncertainty into markets, investors should expect more rocky stretches like the battering stocks took last week, one fund manager contended Monday.

Major U.S. indexes spiked more than 1 percent Monday, as the Dow Jones industrial average looked primed to break a seven-day losing streak. But the pain may not subside, as markets have to "slog through" lingering concerns created by the world's second-largest economy and the U.S. central bank, said Krishna Memani, chief investment officer at Oppenheimer Funds.

"We'll have quite a few of these types of weeks in the future as well," he said in a CNBC "Power Lunch" interview.

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

Sentiment on China took another hit in recent days, as exports dropped 8.3 percent in July, the biggest fall in four months. A solid U.S. jobs report for July also has investors mulling the effects of the Fed raising interest rates for the first time in nine years.

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Still, other market watchers believe stocks can push through those issues. Equities will likely rally through the rest of the year, though they may not show drastic movements in August on lower summer volume, said Gordon Charlop, managing director at Rosenblatt Securities.

He noted that the CBOE Volatility Index—which measures market expectations for short-term volatility—fell on Monday.

"It sort of speaks to the sluggishness of the market at this particular time," he said Monday on "Power Lunch."

Some of Monday's movement can be attributed to "bottom fishing" on low prices, added Kenny Polcari, director of O'Neil Securities.