NEW YORK (TheStreet) -- Stock markets around the world lost over $3 trillion last week and entered a bear market as fear of default among some troubled European nations increased once again.Last week, the S&P 500 Index dropped 6.5% to 1,136. The index gave back the 5.4% gain achieved in the prior week, the third-biggest weekly gain since 2009, which had lifted the index to the top end of the range at 1216. The volatility continues within the range of about 1120 to 1220 on the S&P 500, a range that has prevailed since early August as you can see in Chart 1. Chart 1: S&P 500 Traverses its Range
Source: LPL Financial, Bloomberg data 9/25/11
The S&P 500 is an unmanaged index, which cannot be invested into directly. Past performance is no guarantee of future results. The declines were not restricted to the U.S. markets as the concerns remain focused on the European debt problems. Based on the MSCI All-Country World Index, stock markets around the world lost over $3 trillion last week (by comparison, all of Greece's government debt totals about $200 billion) and entered a bear market as fear of default among some troubled European nations increased once again. This was the third-largest weekly decline since the global recovery began in March 2009.