Art Cashin: 'Sigh of relief' rally on Wall Street

Art Cashin, UBS director of floor operations at the NYSE, called Friday's surge in stocks a "sigh of relief" rally.

He pointed to reprieve about Europe, muted Hong Kong demonstrations and calmed fears about Ebola as reasons the market is soaring.

Also giving a major boost: an upbeat September jobs report.

The Dow Jones Industrial Average rose more than 200 points, staging a steady climb higher after September's nonfarm payroll report came in stronger-than-expected. Employers added 248,000 jobs last month, which was above the 215,000 consensus. August's dismal number was upwardly revised and the unemployment rate fell to 5.9 percent, the lowest level since July 2008.

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It is a Goldilocks scenario for Wall Street with the economy improving, albeit at a slow pace, and inflation tame.

Europe rallied to session highs after the jobs report was released. Bond yields, which typically advance when the economy improves, climbed and the U.S. dollar index hit its highest level in four years. A higher U.S. dollar put pressure on commodities, dragging down oil and metals.

Economically sensitive stocks like airlines and railroads are among the best performers as oil slides and brent crude touches its worst level in two years. "That has allowed the transportation stocks to get past the Ebola scare," Cashin said.

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Despite a rough week for stocks that were weighed down by geopolitical tensions, Ebola worries and deflation and growth concerns, major averages are set to notch their best days in several months.

"The real thing is: Let's see if we can kick it in to high gear and break out of that resistance [1,965 to 1,969 on the S&P 500]," Cashin said.