Nasdaq falls for a third day on Microsoft's weak outlook

U.S. stocks fell Thursday as weak outlook from technology bellwether Microsoft dampened investor sentiment, with the major indexes coming off of two straight losing days.

The tech-heavy Nasdaq Composite fell 0.4%. The S&P 500 dipped 0.3%. The Dow Jones Industrial Average shed about 70 points, or 0.2%.

Shares of Microsoft slid about 3% as the company warned revenue and earnings this quarter would fall short of analysts' estimates.

Other mega-cap technology names followed suit, with Apple and Amazon each down near 1%.

Traders also parsed through corporate earnings results. Hewlett Packard Enterprise fell more than 8% following slight misses on both earnings and revenue. Meanwhile, shares of pet retailer Chewy surged roughly 12% after the company reported strong quarterly results.

Investors eyed employment data showing the slowest job creation pace of the pandemic-era recovery. Private sector employment rose by just 128,000 in May, ADP reported Thursday, falling well short of the 299,000 Dow Jones estimate.

The three major stock averages are each down at least 1% on the holiday-shortened week.

"Our view is cautious as we close out the second quarter," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. "Global central bank uncertainty and the pace of tighter monetary policy, still-tight global energy ... markets — which may lead to higher prices still — and headwinds for corporate earnings growth are risks for investors moving forward."