Why Wells Fargo's Stock Spiked Higher Today

Wells Fargo & Co (NYSE: WFC) shares spiked higher by more than 3% Tuesday morning after the company said it did not incur losses from Archegos Capital.

"We had a prime brokerage relationship with Archegos. We were well collateralized at all times over the last week and no longer have any exposure. We did not experience losses related to closing out our exposure," Wells Fargo said in a statement.

This statement comes after reports that several major investment banks with ties to Archegos Capital Management began liquidating holdings on Friday that pushed down the share prices of Discovery, Inc. (NASDAQ: DISCA) and ViacomCBS Inc (NASDAQ: VIAC).

Wells Fargo provides banking, investment, mortgage, and consumer and commercial finance products and services to individuals, businesses, and institutions in the United States and internationally.