Investors are getting nervous after a downturn in utilities and real-estate investment trusts, Josh Brown of Fusion Analytics said Wednesday.
"I think what people are concerned about today is that there will be a ripple effect. There's definitely a lot of fear," he said. "A lot of people that bought things like utilities and REITs, thinking they were just as good as bonds, which has been the pitch for a long time, are getting a wake-up call."
Stocks were broadly lower across the board, wiping out the previous session's rally, as investors continued to question when the Federal Reserve would curtail its stimulus program.
(Read More: Stocks Add to Losses on Fed Uncertainty; Dow Drops 150)
On CNBC's "Fast Money," Brown pointed to real estate exchange-traded fund iShares Dow Jones US Real Estate, which erased two months of gains in four sessions.
Brown raised the question of whether the sectors' downturn would be contained, or whether it would drag down the broader market.
(Read More: Dow 28,000 Possible in 6 Years: BlackRock's Fink)
"I think it's too early to tell," he said.
OptionMonster's Pete Najarian noted that financials, such as Goldman Sachs and JPMorgan, and energy stocks were performing well despite a broader decline in the market.
Najarian also warned against some investors' reliance on so-called "defensive" stocks.
"They're finding out it's not the defensive play that they thought," he said. "That's why I'll never use the term 'defensive' when you go there. You go there because you think there's growth. You go there because you think there's growth. You go there because you think there's yield."
The rise in interest rates for the U.S. Treasury 10-year bond were also something to watch, he added.
"Obviously, with that 10-year sitting well above at 2 percent now, that is something that I think you've got to be conscious of, but there are areas of the market that I still are the legs of the rally that continue to move to the upside," he said.
Ten-year Treasury yields above 2 percent wasn't enough to worry Rosecliff Capital's Mike Murphy.
(Read More: 'Every Dip a Buying Opportunity': Pro)
"That's not enough to derail the rally," he said, adding that financials could "absolutely" lead the market's next leg higher.
Utilities had been overbought, he added.
"Utilities ran too far, too fast, and they're correcting now," Murphy said. "I think that's it, plain and simple, not making too much of it."
Trader disclosure: On May 29, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long XLF CALLS; Pete Najarian is long CSCO CALLS; Pete Najarian is long YHOO CALLS; Pete Najarian is long BBRY ; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long F CALLS; Pete Najarian is long BMY; Jon Najarian is long BAC; Jon Najarian is long GLD; Jon Najarian is long MSFT; Jon Najarian is long SFD; Jon Najarian is long F; Jon Najarian is long JOY; Jon Najarian is long NTAP; Jon Najarian is long OC; Jon Najarian is long TMO; Jon Najarian is long ZNGA; Jon Najarian is long UVXY; Mike Murphy is long BAC; Mike Murphy is long FB; Mike Murphy is long F; Josh Brown is long AAPL; Josh Brown is long GLD; Josh Brown is long TGT; Josh Brown is long KORS; Josh Brown is long F; Josh Brown is long VAW.
