"This was pretty much as expected, and so the market certainly did not sizzle. ... The real issue at the moment seems to be just how long it will take until the economic recovery gets under gear. Until then, it seems the Fed at least is not going to raise rates until August or September," said Alan Ackerman, executive vice president of Fahnestock & Co.

The Dow Jones industrial average closed up 28.51, or 0.3 percent, at 9,836.55, giving up an earlier gain of 110.92, according to preliminary calculations. The Dow yesterday tumbled 198.59 to its lowest close since Feb. 19.

But the broader market gave up its advance and finished lower. The Nasdaq composite index fell 4.66, or 0.3 percent, to 1,573.82, after rising as much as 16.09.

The Nasdaq has fallen for five straight sessions, sliding 159.66 and trading at levels not seen since early October. Today marked the Nasdaq's 13th losing session out of the last 15.

The Standard & Poor's 500 index declined 3.18, or 0.3 percent, to 1,049.49, having gained

6 points earlier. The S&P lost 20.76 yesterday.

While the Fed's decision was what the market expected, it still soothed investors' fears that interest rates could increase before the economy has markedly improved.

Overall, investors got what they what they wanted from the Fed, which was some "confidence that the recovery is gaining traction but at the same time, no raise in rates," said John C. Forelli, portfolio manager for Independence Investment LLC in Boston.

But other analysts attributed the bulk of the market's advance to a positive economic report from the Labor Department, which said worker productivity rose at an annual rate of 8.6 percent in the first quarter. Analysts were expecting a 7 percent gain.