Toronto stocks were down Tuesday, as the materials sector dropped off and the markets took in a rate hike from the U.S. Federal Reserve.

The S&P/TSX composite index fell 29.73, or 0.25%, to 12,048.79.

The Fed increased its key rate a quarter point to 4.75%, its fifteenth-straight hike. In making its announcement, the U.S. central bank suggested it was inclined to keep raising rates to try to prevent the economy from growing too fast. Its next announcement is in May.

Eight of the 10 TSX main sub-groups were down, with the materials index off 1.58%.

The May contract for gold was down 40¢ to US$567.

Kinross Gold Corp. fell 16¢ to $11.94.

The energy sector gained 0.64% as the crude oil futures contract gained $1.91, or 3%, at US$66.07 a barrel.

Nexen Inc. gained $1.29, or 2.05%, to US$64.19.

The Canadian dollar fell 0.10 of a cent to US85.41¢.

The S&P/TSX Venture Exchange index moved up 19.59, or 0.71%, to 2,790.15.

In New York, markets dropped after the wording of the Fed announcement spooked investors.

The Dow Jones industrial average closed down 95.57 points at 11,154.54.

The Nasdaq Composite Index shed 11.12 points to 2,304.46 and the S&P 500 Index lost 8.38 points to 1,293.23.