The Nasdaq Composite, S&P 500, and Dow Jones all closed higher on Friday, as President Donald Trump said the US is close to signing a trade deal with Japan.

The Nasdaq increased 1.3% to 17,379.92, while the S&P 500 gained 0.7% to 5,525.08. The Dow Jones Industrial Average inched up 0.05% to 40,113.50. Consumer discretionary led gains among sectors, and materials posted the biggest drop.

US Treasury yields were down, with the 10-year rate decreasing about 5.5 basis points to 4.25% and the two-year rate dropping 3.2 basis points to 3.76%.

June West Texas Intermediate crude oil increased 0.7% to $63.21 a barrel on Friday.

The US is "very close to a deal" on tariffs with Japan, The Wall Street Journal reported, citing Trump. "Trade deals are going very well," he reportedly said.

In economic news, US consumer sentiment waned for the fourth straight month in April as uncertainty around tariffs dampened expectations and pushed the year-ahead inflation outlook to the highest point since 1981, according to a survey by the University of Michigan.

"While this month's deterioration was particularly strong for middle-income families, expectations worsened for vast swaths of the population across age, education, income, and political affiliation," Surveys of Consumers Director Joanne Hsu said. "Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead."

In company news, Charter Communications (CHTR) was the top gainer on the S&P 500, with shares up 11%. The company's Q1 revenue unexpectedly rose year over year, aided by a double-digit gain in mobile service.

Tesla (TSLA) shares surged 9.8%. The company's India office is refunding reservation fees to customers who booked the Model 3 in 2016, Bloomberg News reported Friday, citing emails from the company.

Chipmaking giant Nvidia's (NVDA) shares were up 4.3%, the best performer on the Dow.

T-Mobile US (TMUS) was the worst S&P 500 performer, down 11%. The wireless company's phone subscribers declined more than market expectations in the first quarter, while earnings and revenue topped estimates late Friday.

Gold decreased 1.2% to $3,307.90 per troy ounce, while silver was down 1.9% to $32.86 per troy ounce.