(REUTERS) — U.S. stocks fell more than 2 percent on Friday, dragging the Dow into negative territory for the year after a dismal U.S. jobs report added to fears that Europe’s spiraling debt crisis was dragging down the world economy.

The S&P 500 closed at its lowest since early January and ended below its 200-day moving average for the first time in 2012 after the Labor Department said employers created just 69,000 jobs last month, the weakest in a year.

The bleak May jobs report caps a week of soft economic data from China and growing problems in Europe as Spain’s bank crisis deepened.

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