After initial confusion, investors yesterday welcomed the Federal Reserve's long-expected decision to raise interest rates, sending most stocks higher even as blue-chips fell back slightly.

The Dow Jones industrial average closed at 11,283.30 on a loss of 16.46 points, or 0.15 per cent. The Fed's announcement sparked a volatile afternoon on Wall Street, as the index jumped more than 65 points from Monday's record high close, then tumbled as much as 105.43 points before regaining ground.

Broader stock indicators ended higher. The Standard and Poor's 500 rose 3.28 to 1,363.50. The Nasdaq composite index rose 32.79 to 2,752.36.

Declining issues outnumbered advancers by a 4-to-3 margin on the New York Stock Exchange, with 1,714 down, 1,291 up and 563 unchanged.