Wall Street rallied today after the US government’s jobless claims data and Ford Motor’s first-quarter results helped reinject some optimism about the economy into the market.

Wall Street managed a moderate gain in an erratic session as investors sorted through a downbeat Federal Reserve assessment of the economy and were also disappointed by a plan to bail out troubled bond insurer Ambac Financial Group Inc.

Wall Street finished essentially flat today, with investors still confident the Federal Reserve will lower rates next week but treading cautiously as oil prices crossed $80 a barrel for the first time and the dollar extended its decline.