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Power Play: Biggest risks to the market

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
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Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.

Stocks rally on Friday as WTI crude posts its biggest one-day gain since August 31. Despite this move, the Dow and S&P 500 are still down 7 percent this year, while the Nasdaq is down 8 percent.

Kate Moore, chief investment strategist at J.P. Morgan Private Bank tells CNBC's "Power Lunch"on Friday the markets are range-bound and we won't completely see an end to volatility.

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"The big thing to watch is the tone and communication from policy makers in China. At this point, the macro data has not deteriorated to the point people feared. The challenge is figuring out what leadership wants to do," Moore said.

Northern Trust Wealth Management CIO Katie Nixon also believes China is a concern and what went wrong last year could go wrong again in 2016.

"Our key risk case remains a hard landing in China. Thus far, we interpret recent events as more market-driven than reflective of a drastic change in Chinese fundamentals," Nixon said.

The Dow, S&P 500 and Nasdaq are up more than one percent during trading. The Shanghai Composite closed higher.