NEW YORK - US markets closed lower, giving up much of the gains made on the Federal Reserve's no-taper decision, as the country girded for a disruptive budget and debt showdown. The Dow Jones Industrial Average shed 185.46 points (1.19 per cent) at 15,451.09 on Friday. The broad-based S&P 500 dropped 12.43 (0.72 per cent) to 1,709.91, while the tech-rich Nasdaq Composite fell 14.65 (0.39 per cent) at 3,774.73. The Dow gave up more than it had added in Wednesday's record-breaking surge after the Federal Reserve announced it would not begin closing its easy money stimulus spigot this month, greeted with surprise and enthusiasm by investors. The S&P 500, which along with the Dow set new record closing highs on Wednesday, held on to only a third of its gains. Buying was dulled by comments from Fed official James Bullard that Wednesday's vote was close over reducing the $US85 billion ($A90.54 billion) a month bond-buying program, and his suggestion that it could still happen next month if economic data improves sufficiently. LONDON - Europe's main stock markets closed down, with London's benchmark FTSE 100 index sliding 0.44 per cent to 6,596.43 points. Frankfurt's DAX 30 slipped 0.21 to 8,675.73 points on Friday, and the CAC 40 in Paris dipped 0.06 per cent to 4,203.66 points. HONG KONG - Asian shares fell after a global rally powered by the US Federal Reserve's decision to maintain its vast stimulus program, with a surprise interest rate hike dragging down Indian stocks. Tokyo slipped 0.16 per cent, or 23.76 points, to 14,742.42 as the US dollar held firm on better-than-expected US economic data. Sydney fell 0.36 per cent, or 18.8 points, to 5,276.7. Markets in Seoul, Shanghai, Hong Kong and Taipei were closed for public holidays. WELLINGTON - The NZX 50 Index fell from a record high, dropping 22.658 points, or 0.5 percent, to 4730.377.