The Dow Jones industrial average fell 20.71 to 5,874.03, surrendering a sudden 50-point gain that followed the central bank's announcement shortly after 2 p.m.
Advancers outnumbered decliners by nearly an 8-to-7 margin on the New York Stock Exchange, with 1,230 up, 1,080 down and 912 unchanged.
NYSE volume totaled 457.89 million shares vs. 297.76 million yesterday. The NYSE's composite index fell 0.28 to 365.23, and the Standard & Poor's 500-stock index fell 1.42 to 685.61.
The Nasdaq composite index rose 3.85 to 1,215.32, and the American Stock Exchange index fell 0.22 to 563.40.
"We had a relief rally, and a lot of folks decided to sell into it," said David Shulman, chief market strategist at Salomon Brothers.
Only the technology-laden Nasdaq market, lifted by a rally in semiconductor shares, managed a solid gain for the session.
Semiconductor shares rallied after Morgan Stanley and Hambrecht & Quist upgraded their assessments of the industry.
Stock prices initially swung with the bond market, where the yield on the 30-year Treasury plunged below 7 percent right after the Fed announcement.
Bonds quickly gave back some of the gains, and the benchmark long-bond yield edged back to 6.98 percent, but that was still down from late yesterday's 7.02 percent.