Wall Street acted like judges at a beauty pageant during Fed Chair Janet Yellen's debut, one market professional told CNBC on Thursday.
As Yellen hinted Wednesday at raising benchmark interest rates sooner than expected—during the first half of 2015—the stock market answered with a 114-point drop in the Dow Jones Industrial Average. Westwood Capital Managing Director Len Blum chalked up the market's skittish reaction to traders anticipating other traders.
"The market reacted based on what everyone in the market thinks other people are going to do," Blum said on "Squawk Box. "It's that classic Keynesian reaction. The market is like a beauty pageant where all the judges vote based on the other judges, and how they're going to cast their ballots."
The markets appeared starved for information on the Fed's monetary policy as the central bank scales down its quantitative easing program and plans to raise interest rates from near zero, Blum said, Yellen gave them little to work with, but the six-month range on raising rates was "a little bit of a gaffe." Still, he added, the window gives her plenty of time to adjust policy if inflation picks up, for example.
(Read more: Traders jittery as Yellen implies earlier rate hike)
"She's got plenty of time to change her mind, and there wasn't all that said," Blum said. "I don't see inflationary pressures. I don't see pressures to raise rates."