U.S. stocks traded higher on Friday on rising expectation for a tax reform in the country.

At midday, the Dow Jones Industrial Average added 90.67 points, or 0.39 percent, to 23,253.71. The S&P 500 gained 7.57 points, or 0.30 percent, to 2,569.67. The Nasdaq Composite Index was up 23.61 points, or 0.36 percent, to 6,628.67.

The U.S. Senate approved a budget of 4 trillion U.S. dollars on Thursday, taking a crucial step toward Republicans' goal of passing a tax plan this year.

Expectations for corporate tax cuts had increased recently, sending U.S. stocks to record highs, with the Dow breaking the 23,000-threhold for the first time earlier this week.

Traders also kept an eye on the earnings reports on Friday.

General Electric (GE) reported adjusted third-quarter profit of 29 cents per share, missing market estimates of 49 cents per share. The company also cut its full-year outlook. Shares of GE declined 2.33 percent in mid-trading.

According to consulting company Earnings Scout, this earnings season has gotten off to a good start, with about 80 percent of companies that have reported beating on the bottom line, while over 70 percent having topped sales estimates.