Fed Chair Janet Yellen essentially just told investors around the globe to take a breather, David Lebovitz, global market strategist at JPMorgan Asset Management, said Wednesday.
"Coming into 2016, investors were worried that the Fed was going to hike four times this year. We were never really of the view that there were going to be four hikes, and really what Yellen said was 'Look, relax. We're going to go slow,'" Lebovitz told CNBC's "Squawk on the Street."
Global equity markets surged Wednesday after Yellen said Tuesday that recent economic readings have been mixed and that it would be appropriate to proceed with caution in adjusting monetary policy.
European equities closed 1.3 percent higher, while China's Shanghai composite advanced 2.8 percent overnight. U.S. stocks followed suit, with the Dow Jones industrial average briefly gaining more than 150 points, while the benchmark S&P 500 hit its highest level of 2016.