Around the World's Markets: New York

THE DOW fell after the Federal Reserve raised short-term interest rates by a quarter-point, as expected. However, the Nasdaq gained, led by Microsoft after it won a court victory in a copyright dispute.

The Dow closed down 16.46 points at 11,283.30, rebounding from a 105- point drop. The index touched a record within minutes of the rates announcement, then tumbled 172 points. The Nasdaq rose 32.68 to 2,752.25; the S&P500 gained 3.27 to 1,363.49.