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* China condemns U.S. bill on Hong Kong rights
* Trade-sensitive technology shares slip
* Target, Lowe’s gain on upbeat forecasts
* Futures down: Dow 0.27%, S&P 0.24%, Nasdaq 0.33% (Adds comment, updates market action)
By Arjun Panchadar
Nov 20 (Reuters) - Wall Street’s main indexes were set to fall at the open on Wednesday, as escalating political tensions between Washington and Beijing sparked fears that the two sides could fail to reach a trade agreement soon.
Beijing on Wednesday condemned U.S. legislation aimed at protecting human rights in Hong Kong amid prolonged anti-government protests, adding to jitters from a threat by President Donald Trump to raise tariffs on Chinese imports if a trade deal was not finalized.
“The biggest concern (to markets) is the Senate action with respect to Hong Kong,” said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
“China has been clear that they don’t want to see any foreign interference in Hong Kong. That’s the real negative to start today’s market.”
Trade-exposed technology stocks such as Intel Corp, Micron Technology Inc, and Apple Inc fell between 0.3% and 0.8% premarket. Most U.S.-listed Chinese stocks also dropped.
The world’s top two economies came tantalizingly close to a deal in May after nearly a year of tariffs on each other’s goods, before talks fell apart.
Hopes had since risen that Washington and Beijing would strike at least a partial deal, with Wall Street’s main indexes scaling record highs this month.
The benchmark S&P 500 and blue-chip Dow Jones retreated slightly at the close on Tuesday as dour forecasts by retailers Home Depot Inc and Kohl’s Corp raised concerns about the strength of U.S. consumer spending.
However, on Wednesday, strong forecasts by retailers Lowe’s Cos Inc and Target Corp sent their shares up 4.7% and 10.2%, respectively, adding to a fairly robust third-quarter earnings season and assuaging investor nerves about the impact of the trade war.
Latest data has pointed to a resilient U.S. economy, but recession fears are creeping back, with the gap between 2-year and 10-year Treasury yields at its narrowest in more than two weeks.
Focus now turns to minutes from the Federal Reserve’s latest policy meeting for clues to its stance on monetary policy. The central bank cut interest rates for the third time this year in October, but signaled it may be done with rate easing for now.
At 8:45 a.m. ET, Dow e-minis were down 75.00 points, or 0.27%. S&P 500 e-minis were down 7.50 points, or 0.24% and Nasdaq 100 e-minis were down 27.25 points, or 0.33%.
Among other stocks, Bristol-Myers Squibb Co fell about 0.8% after a late-stage trial testing a combination of its cancer drugs missed a main goal of preventing skin cancer from recurring in a certain group of patients.
Apparel retailer Urban Outfitters Inc slumped 14.5% after reporting lower-than-expected quarterly sales, hit by weaker demand for its namesake brand. (Reporting by Arjun Panchadar and Medha Singh in Bengaluru; Editing by Shounak Dasgupta)