STOCKS retreated yesterday as investors tried to determine whether the Federal Reserve's interest-rate increase was the first in a series of tightenings.

On Wall Street, the Dow Jones industrial average fell 29.08 points to close at 6,876.17, erasing a 47-point gain that came immediately following the Fed's announcement that it raised interest rates for the first time in two years.

Broad-market indexes were also lower, except for the Nasdaq composite index, which was fuelled by strength in a number of bellwether technology shares.

Stocks were higher for most of the day, but trading was tempered by investor caution ahead of the outcome of the Fed meeting.

Stocks initially rose on the much-anticipated increase, but those gains disappeared almost immediately as investors began to consider whether the Fed would again raise rates this year.

Advancing issues outnumbered decliners by a 10-to-9 margin one the New York Stock Exchange.