US benchmark equity indexes closed higher on Friday, after US housing starts increased in May while consumer sentiment declined for the month.

The Nasdaq rose 0.5% to 19,199.21, and the S&P 500 increased 0.6% to 5,954.64. The Dow Jones Industrial Average was up 0.8% to 42,650.15. All sectors except energy were in the black, with healthcare and utilities leading the gainers.

US Treasury yields were higher, with the 10-year rate increasing 0.4 basis points to 4.4% and the two-year rate gaining 0.9 basis points to 4%.

June West Texas Intermediate crude oil increased 1.2% to $62.34 a barrel on Friday.

In economic news, US housing starts rose last month as a double-digit percentage gain in multi-family projects helped offset a decline in the single-family component, government data showed.

In the coming quarters, housing starts are expected to drop below 1.3 million units from higher building costs due to tariffs, Oxford Economics said. "The risk to our forecast is tilted to the upside if the (US') recent truce on tariffs with China becomes permanent or if tariffs are scaled back further," the firm wrote.

Consumer sentiment unexpectedly deteriorated in May, hitting the lowest reading in nearly three years, as inflation expectations mounted, according to a survey by the University of Michigan.

"Many survey measures showed some signs of improvement following the temporary reduction of China tariffs, but these initial upticks were too small to alter the overall picture -- consumers continue to express somber views about the economy," said Joanne Hsu, Surveys of Consumers director.

In company news, UnitedHealth Group (UNH) shares surged 6.4%, the top gainer on the S&P 500. The company said two directors, Kristen Gil and Timothy Patrick Flynn, purchased shares worth $1 million and $491,786, respectively.

Fiserv (FI) shares were up 4.7%. Goldman Sachs and Wolfe Research reduced their price targets on the company's stock to $194 from $233 and to $210 from $220, respectively.

CoreWeave (CRWV) shares jumped 22%, a day after Nvidia (NVDA) disclosed a 7% stake in the company. Nvidia shares added 0.4%.

Applied Materials (AMAT) was the worst performer on the S&P 500, down 5.3%. The semiconductor equipment maker reported fiscal second-quarter revenue late Thursday that trailed Wall Street's estimates.

Gold decreased 0.9% to $3,196.20 per troy ounce, while silver was down 0.9% to $32.40 per troy ounce.