Bill continued to swirl over the open waters of the Atlantic as a Category 2 storm with maximum sustained winds of 105 mph (165 kph). The U.S. National Hurricane Center in Miami said it could regain intensity over the weekend as its center passes between Bermuda and the eastern U.S. seaboard.
The tropical storm warning included Nantucket and Martha's Vineyard off the Massachusetts coast, meaning tropical storm-force winds of 40 mph (64 kph) or more could hit in the next 24 hours. A tropical storm watch also remained in effect for Bermuda, though a hurricane watch was canceled.
Tourists gathered at Bermuda's pink sand beaches Friday to watch the powerful surf. Many shrugged off the threat of the approaching storm, but it apparently cut short a beachfront vacation for U.S. Secretary of State Hillary Rodham Clinton and her husband, former President Bill Clinton.
On the U.S. East Coast, offshore waves of 20 feet (6 meters) or more and rip currents at the beach are expected over one of the summer's last weekends. Forecasters warned boaters and swimmers from northeastern Florida to New England of incoming swells, as Bill passes far out to sea on a northward track toward Canada's Maritime Provinces. Forecasters said tropical storm watches or warnings could be issued Saturday for Nova Scotia and Newfoundland in Canada.
By Friday night, the streets of Bermuda's capital were mostly empty and blanketed with rain. Luxury boutiques boarded up their windows. At the bar of the Fairmont Hamilton Princess hotel, a few guests sampled the "Dark
'n Stormy" cocktail as Bill's outer bands raked the island.
Most islanders hunkered down in their homes. Amanda Walker, a 31-year-old waitress originally from Toronto, said she and her boyfriend had to track down her cat, Mira, before the winds got any stronger.
"We just need to lock ourselves in and hope for the best," she said.
Some roads along Bermuda's northern coast were flooded and traffic was heavy in Hamilton, the capital. The airport, which is accessible only by a low causeway bridge, announced it was closing Friday for the duration of the storm. All ferry service was canceled until Sunday.
Bill was forecast to bring 1 to 2 inches (2.5 to 5 centimeters) of rain to Bermuda, with up to 5 inches (13 centimeters) in some areas.
Much of Bermuda, a wealthy offshore financial center, is solidly built and able to withstand rough weather. But storm tides were expected to raise water levels up to 3 feet (1 meter) along the shores and battering waves could cause significant erosion.
Despite warning signs at Bermuda's beaches, tourists gathered to watch waves pummel the sand and wash up to the dunes at Horseshoe Bay.
"We've never experienced a hurricane before, so it's very interesting. The children are loving it," said Kevin James, 54, a pharmaceutical company executive from London, who watched with his wife and two young children.
Other tourists flew out before the storm bore down. State Department spokesman Ian Kelly told reporters the Clintons left Bermuda on Thursday night.