NEW YORK (TheStreet) -- Shares of Deutsche Bank (DB) - Get Report were declining by 6.67% to $11.48 during mid-afternoon trading on Thursday, after reports surfaced that indicated 10 hedge funds reduced exposure to the bank. In response, CNBC's Bob Pisani explained the U.S. market's reaction to the reports.

"This had an immediate effect on our market here interestingly, perhaps an oversized effect. If you look at the S&P 500, as that story came out we were tooling along just about on the unchanged level and then it dropped rather noticeably," Pisani said.

The KBE, the bank ETF which encompasses the largest banks in the U.S., "that immediately also dropped," Pisani noted.

Referencing JPMorgan (JPM) to illustrate the impact the Deutsche Bank report had on U.S. bank stocks, Pisani said there should not have been any effect, as the case in Germany is non-correlated with U.S. banks.

"This gives you an indication. Liquidity concerns at Deutsche Bank probably having nothing to do with a JPMorgan, for example, but you see JPMorgan is to the downside," he added.

Moreover, there was also a decline in consumer discretionary stocks this afternoon.

"There was a general decline in the rest of the market, even with consumer discretionary stocks right across the board in all the major sectors," Pisani explained.