S&P futures dropped alongside European and Asian stocks on Friday, while the Hang Seng index crashed 5.6%, the most in five years, as markets braced for an escalation in tensions between Washington and Beijing after China announced plans to impose a national security law on Hong Kong during its National People's Congress. Treasuries climbed with the dollar while oil snapped a six-day winning steak.
Still, Wall Street's main indexes were set to end Friday with weekly gains on the back of stimulus hopes and optimism over a pickup in business activity with a nationwide easing in lockdowns. Hewlett Packard Enterprise fell 7.1% in premarket trade after missing second-quarter revenue and profit estimates, hit by global lockdowns since February.
China moved on Friday to impose a national-security law in Hong Kong that could see mainland intelligence agencies set up bases in the global financial hub, raising fears of more pro-democracy protests. The move could also ratchet up U.S.-China tensions as President Donald Trump on Thursday warned Washington would react "very strongly" if Beijing went ahead with the law.