Updated from 3:28 EST

Financial stocks were rising Thursday, as President Barack Obama's budget included another $750 billion available to prop up the ailing sector.

Obama's more than

$3 trillion budget

proposes boosting the budget deficit by an additional $250 billion this year -- to a record $1.75 trillion -- enough to support as much as $750 billion more on the government's bank rescue program.

But the rally was tempered later in the afternoon, after the Federal Deposit Insurance Corp. reported commercial banks and savings institutions it insures reported a net loss of $26.2 billion in the fourth quarter the first quarterly loss since 1990.

Bank of America

(BAC) - Get Report

shares were up 3.1% to $5.32.

JPMorgan Chase

(JPM) - Get Report

shares rose 6.1% to $23.05.

Wells Fargo

(WFC) - Get Report

shares were up 7.1% to $14.40.

The New York Financial Sector Index closed up 2% to 2,649.

On the down side,

American Express

(AXP) - Get Report

lost 3.8% to $12.57. On late Wednesday, Moody's Investors Service said it was reviewing the charge card company's long-term and short-term ratings for potential downgrade.

Ambac Financial

(ABK)

shares fell 14.3% to 78 cents, after reporting a $2.3 billion net loss for the fourth quarter late Wednesday.

This article was written by a staff member of TheStreet.com.