01:36 PM EDT, 08/16/2024 (MT Newswires) -- US equity indexes rose while most government bond yields fell after midday on Friday as a consumer sentiment gauge increased more than forecast, reflecting presidential election politics.

The Nasdaq Composite climbed 0.4% to 17,662.5, with the S&P 500 up 0.3% to 5,558.2 and the Dow Jones Industrial Average 0.3% higher at 40,684.4. Real estate was the steepest decliner, while communication services and financials were the top gainers intraday.

The University of Michigan's preliminary consumer sentiment index rose to 67.8 in August from 66.4 in July, above the 66.9 anticipated in a survey compiled by Bloomberg. Respondents saw one-year inflation expectations at 2.9%, in line with July, while five-year inflation expectations remained at 3% for the fifth consecutive month.

"The rebound in sentiment this month is politically charged," Jefferies Senior Economist Thomas Simons said in a note. "President [Joe] Biden performed poorly in the debate right before the interview collection period for the July data."

The CBOE Volatility Index (VIX) declined 3.2% to 14.74, continuing to retreat from the 65-level touched recently on an intraday basis. On Thursday, retail sales grew at more than twice the pace forecast for July, alleviating concern that the economy could be facing a significant slowdown. The inflation data this week also showed price pressures are moderating, signaling a soft economic landing that requires the Federal Reserve to cut, and not slash, interest rates.

Further, in economic news, housing starts fell 6.8% to a seasonally adjusted annual rate of 1.24 million units in July from the downwardly revised 1.33 million print the month prior, the Census Bureau and the Department of Housing and Urban Development said. The consensus was for 1.33 million in a survey compiled by Bloomberg.

"The US residential market continues to struggle amid high mortgage rates and low affordability," BMO Senior Economist Jay Hawkins said in a note.

Most Treasury yields fell, with the 10-year down 3.6 basis points to 3.89%, and the two-year rate slid three basis points to 4.07%, following the big move on Thursday that reflected improving economic data.

Meanwhile, West Texas Intermediate crude oil slumped 1.9% to $76.69 a barrel amid concerns over the health of China's economy and easing geopolitical worries. China is the world's biggest oil importer.

In company news, Tapestry (TPR) reported better-than-expected fiscal Q4 results and anticipates 2025 earnings to rise from a year earlier. Its shares climbed 3%, the top performer on the S&P 500.

Gold jumped 1.6% to $2,531.42 an ounce, and silver advanced 1.2% to $28.75.