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* Technical shares lead to decline in major S&P sectors
* Wells Fargo rises by new CEO  * Micron falls on weak outlook in Q1[ads1]
* US consumer spending hardly increases in August
* Indices down: Dow 0.18%, S&P 0.48%, Nasdaq 0.99% (Early afternoon updates)
By Ambar Warrick and Medha Singh
27. September (Reuters) – US stocks slipped Friday after news that the Trump administration was considering delisting Chinese companies from US exchanges and restricting US investment in China.
US-listed shares in Alibaba Group Holding Ltd, Baidu Inc and JD.com Inc slipped between 4% and 7% on the news.
The tariff-sensitive semiconductor index in Philadelphia extended the decline to 1.7%. The index was already under pressure from Micron Technology Inc's 10% tumble after predicting a disappointing first quarter result.
The S&P technology sector slipped 1.2%, the most among the 11 major S&P sectors.
High-level trade talks between Washington and Beijing are scheduled for next month before the start of the third quarter revenue season.
"You never know if it is an effort to have some influence on these conversations … it may just be trying to come up with a base, but at face value it will be a bit negative for the markets," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
The three main indices are set to end a somewhat unstable week, following conflicting headlines about US-China trade, and when US Democrats launched an investigation into President Donald Trump.
Shares of Wells Fargo & Co rose 4.1% and were top winners of the S&P 500 after the lender named bank veteran Charles Sc harf as CEO. The banking sector increased by 1.2%.
In addition to the headlines on trade, next week investors will focus on ISM's Purchasing Management Index (PMI) data for September, especially after the August report showed contraction in the industry, also as the key jobs report.
At 1:14 PM ET, the Dow Jones Industrial Average was down 47.87 points, or 0.18%, at 26,843.25, the S&P 500 was down 14.31 points, or 0.48%, at 2,963.31 . The Nasdaq Composite was down 79.54 points, or 0.99%, at 7,951.12.
Data showed that consumer spending in the United States barely increased in August, suggesting that the economy's most important growth engine slowed after accelerating sharply in the second quarter.
New orders for key US manufactured capital goods also dropped unexpectedly in August, but the so-called core consumer spending index (PCE), the Fed's preferred inflation measure, rose to 1.8% in August, the largest price increase since January.  Declining questions were the number of advancers for a 1.36-to-1 ratio on the NYSE and a 1.47-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and five new lows, while the Nasdaq recorded 24 new highs and 83 new lows. (Reporting by Ambar Warrick and Medha Singh in Bengaluru; Editing by Patrick Graham and Shounak Dasgupta)