US STOCKS-Wall St drops; White House considers delisting Chinese companies

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* Wells Fargo rises on new CEO appointment
* Micron falls on weak Q1 profit outlook
* Indexes down: Dow 0.6%, S&P 1%, Nasdaq 1.7%

(Updates to late afternoon)
By Ambar Warrick and Medha Singh
NEW YORK, Sept 27 (Reuters) - U.S. stocks fell on Friday
after news that the Trump administration was considering
delisting Chinese companies from U.S. stock exchanges and limit
U.S. investments into China.
The tariff-sensitive Philadelphia semiconductor index .SOX
extended its decline to 2.7%. The index was already under
pressure from Micron Technology Inc's MU.O tumble after it
forecast a disappointing first-quarter profit. The S&P technology .SPLRCT sector dropped 1.8%.
U.S.-listed shares of Alibaba Group Holding Ltd BABA.N , Baidu
Inc BIDU.O and JD.com Inc JD.O were sharply lower.
High-level trade talks between Washington and Beijing are
scheduled for next month before the start of the third-quarter
earnings season.
"If our policies spark a major sell off in Shanghai where
that creates problems for China that could negatively impact the
trade negotiations which are supposed to start on Oct. 10. That
is where the U.S. based fear would come from," said Michael
O'Rourke, chief market strategist at JonesTrading in Greenwich,
Connecticut.
Adding to the negative momentum, the S&P 500 index fell
below its 50-day moving average in afternoon trading.
At 2:55PM ET, the Dow Jones Industrial Average .DJI fell
162.36 points, or 0.6%, to 26,728.76, the S&P 500 .SPX lost
30.49 points, or 1.02%, to 2,947.13 and the Nasdaq Composite
.IXIC dropped 136.58 points, or 1.7%, to 7,894.08.
The three main indexes are set to end lower in a volatile
week, which included U.S. Democrats launching an impeachment
investigation on President Donald Trump.
Shares of Wells Fargo & Co WFC.N rose 3.6% and the stock
was among top gainers on the S&P 500 .SPX after the lender
named banking veteran Charles Scharf as chief executive officer.
Data earlier showed U.S. consumer spending barely rose in
August, suggesting that the economy's main growth engine was
slowing after accelerating sharply in the second quarter. Declining issues outnumbered advancing ones on the NYSE by a
1.77-to-1 ratio; on Nasdaq, a 2.05-to-1 ratio favored decliners.
The S&P 500 posted 11 new 52-week highs and 6 new lows; the
Nasdaq Composite recorded 26 new highs and 104 new lows.