So to what extent could avian flu become a risk for the entire market?
"Given that people are looking for an excuse to sell the market, you could certainly see some pressure here," said Michael Block, chief equities strategist at Phoenix Partners Group.
In China, "You already have some doubts about whether consumption is hitting a wall," Block said, pointing out that February's retail sales number showed the slowest rate of growth since January 2005. "When you have a situation in which people are afraid to go out in public and shop and be consumers, it's concerning, and brings the domestic growth thesis for China to a grinding halt."
So what stocks should investors look out for?
"The airlines are the obvious ones," Block said. But he also named one stock that could get seriously hurt: Yum. "If no one's going to eat chicken in China," Block said," that's going to be a problem."
RJ Hottovy, who covers the name for Morningstar, agrees. "Yum has done a good job of looking at its supply chain and finding any problems. But if this is a widespread issue, that certainly could have an impact on same-store sales for Yum."
—By CNBC's Alex Rosenberg
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