WORCESTER, Mass. — It was a bad day on Wall Street and around the world as markets fell.

The Dow and the S&P 500 posted their biggest daily losses in almost two years.

A local economist points to Friday’s job report. It showed U.S. employers added fewer positions than expected in July and the unemployment rate increased to the highest level in nearly three years.

Holy Cross Professor Victor Matheson said while the Federal Reserve has tried to bring down inflation, by actively slowing down the economy and raising interest rates, the question is when will they take their foot off the brake?

"I think the big key here is people are worried about the potential for recession, but the Federal Reserve also can take that into account and is likely to start lowering interest rates soon,” said Matheson. “So, you know, for Worcester viewers, you know, look at those interest rates on car loans, on mortgages, probably just start coming down fairly soon."

The damage wasn't just here at home. It was a global sell-off Monday. Japan's stock market saw its biggest drop since 1987.