US STOCKS-Wall Street slips as trade war stokes fears of recession

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* Rate-sensitive banks shares fall
* FAANG stocks slip
* Ten of 11 major S&P sectors lower
* Amgen up after winning U.S. patent battle over arthritis
drug
* Indexes down: Dow 0.72%, S&P 0.69%, Nasdaq 0.80%

(Updates to open)
By Medha Singh
Aug 12 (Reuters) - U.S. stocks slipped on Monday, dragged
down by financial shares, as investors fled riskier assets on
fears that a drawn-out trade war between the United States and
China could force the global economy into recession.
The three main Wall Street indexes ended marginally lower
last week, wrapping up five days of high volume trading marked
by wild swings, as investors feared that a slide in China's yuan
would expand the scope of the trade war to include currencies.
President Donald Trump said on Friday he was not ready to
make a deal with China, pouring cold water on any hopes that the
dispute would end soon. Trump's pledge to tax the remaining $300
billion worth of Chinese imports goes into effect on Sept
1. "It appears to me that the U.S. and China are pulling
further apart on trying to reach an agreement," said Randy
Frederick, vice president of trading and derivatives for Charles
Schwab in Austin.
"If he (Trump) postpones that date (Sept. 1), we may get a
short period of calm but as long as that issue of new tariffs is
floating around out there, pending at some point, I think this
volatility is going to remain."
Over the weekend, Goldman Sachs Group Inc GS.N said fears
of the U.S.-China trade war leading to a recession were growing
and that it no longer expected a trade deal before the 2020 U.S.
presidential election. Trade-related worries have been a major drag on the
benchmark S&P 500 .SPX , which has slipped 3.7% from its
all-time high hit in July.
At 9:39 a.m. ET, the Dow Jones Industrial Average .DJI was
down 188.66 points, or 0.72%, at 26,098.78, the S&P 500 .SPX
was down 20.19 points, or 0.69%, at 2,898.46. The Nasdaq
Composite .IXIC was down 63.78 points, or 0.80%, at 7,895.36.
Investors seeking safety in perceived safe havens bolstered
the Japanese yen, gold prices and U.S. government bond prices.
Ten of the 11 major S&P sectors were in the red, with the
S&P 500 financial index .SPNY shedding 1.47% and leading the
losers. The bank sub-sector .SPXBK tumbled 2.01%, as lower
bond yields hit shares of interest-rate sensitive lenders.
The so-called FAANG group - Facebook Inc FB.O , Amazon.com
Inc AMZN.O , Apple AAPL.O , Netflix Inc NFLX.O and
Google-parent Alphabet Inc GOOGL.O - which have led the market
rally this year, slipped between 0.5% and 1.5%.
Amgen Inc AMGN.O rose 4.0% as a U.S. judge upheld two
patents relating to blockbuster rheumatoid arthritis drug
Enbrel, denying a challenge by Novartis AG NOVN.S , which is
seeking to launch a copycat version. Declining issues outnumbered advancers for a 2.80-to-1 ratio
on the NYSE and for a 2.69-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and nine new
lows, while the Nasdaq recorded 13 new highs and 62 new lows.