The number of jobs the U.S. economy added in September was so unexpectedly high that markets fell right on cue. But what happened after was a lesson in looking beyond the headline number.

Economists were expecting job creation to slow from 227,000 in August to 170,000 in September. Instead, the shocker of a jobs report said nonfarm payrolls increased by 336,000 last month, the most since January. Markets slumped on the news.

Yet at the end of the day major indexes returned to the green in a stunning turnaround. The S&P rebounded to add 1.18%, the Nasdaq rallied 1.6% and the Dow Jones Industrial Average gained 0.87%. Treasury yields dipped slightly from session highs.

What prompted the rapid change in sentiment?

After reeling from the shocking headline number, investors took time to digest details in the report. Wage growth was softer than expected and unemployment held steady. Both statistics, in combination with the massive jobs creation, suggest U.S. consumers remain strong without adding more pressure to inflation. In other words, there’s more evidence the Fed’s successfully steering the economy to a soft landing.   

Despite the turbulence last week, the S&P managed to notch a 0.48% gain, breaking a four-week losing streak. The Nasdaq also managed to climb 1.6% for the week. However, the Dow was down 0.3%.

But any optimism October will prove a better month was diminished with Hamas’ attack on Israel.

Oil prices spiked 4% on the news, adding to market jitters. But the surge in oil’s likely a “knee-jerk surge,” according to Vandana Hari, CEO of Vanda Insights. Neither side is a major oil supplier, so “the impact on the oil price will be limited” — unless the war expands into a regional affair with U.S. and Iran engaging in a proxy war, said Iman Nasseri, Middle East managing director of energy consultancy Facts Global Energy.

Still, it’s a new headache markets have to deal with, throwing more volatility into an already turbulent trading season.

— CNBC’s Lee Ying Shan contributed to this report