In 2022
If you are looking for the same functionality as this.setState ( came from the class components ) in functional components then this is the answer that helps you a lot.
For Example
You have a state like below and want to update the specific field only from the whole state then you need to use the object destructing every time and sometimes it will be irritating.
const [state, setState] = useState({first: 1, second: 2});
// results will be state = {first: 3} instead of {first: 3, second: 2}
setState({first: 3})
// To resolve that you need to use object destructing every time
// results will be state = {first: 3, second: 2}
setState(prev => ({...prev, first: 3}))
To solve that I came up with the useReducer approach. Please check useReducer.
const stateReducer = (state, action) => ({
  ...state,
  ...(typeof action === 'function' ? action(state) : action),
});
const [state, setState] = useReducer(stateReducer, {first: 1, second: 2});
// results will be state = {first: 3, second: 2}
setState({first: 3})
// you can also access the previous state callback if you want
// results will remain same, state = {first: 3, second: 2}
setState(prev => ({...prev, first: 3}))
You can store that stateReducer in utils files and import it in every file if you want.
Here is the custom hook if you want.
import React from 'react';
export const stateReducer = (state, action) => ({
  ...state,
  ...(typeof action === 'function' ? action(state) : action),
});
const useReducer = (initial, lazyInitializer = null) => {
  const [state, setState] = React.useReducer(stateReducer, initial, init =>
    lazyInitializer ? lazyInitializer(init) : init
  );
  return [state, setState];
};
export default useReducer;
Typescript
import React, { Dispatch } from "react";
type SetStateAction<S> = S | ((prev: S) => S);
type STATE<R> = [R, Dispatch<SetStateAction<Partial<R>>>];
const stateReducer = (state, action) => ({
  ...state,
  ...(typeof action === "function" ? action(state) : action),
});
const useReducer = <S>(initial, lazyInitializer = null): STATE<S> => {
  const [state, setState] = React.useReducer(stateReducer, initial, (init) =>
    lazyInitializer ? lazyInitializer(init) : init,
  );
  return [state, setState];
};
export default useReducer;