I agree with what
@Fanaelialae is saying. This spell is begging to for digging through books and wasting huge amounts of table-time, or surprising DMs with some obscure/overlooked spell which defeats a situation, which is cute the first time, but increasingly less cute as time goes on, and makes the caster in question very much the "central character" of the party in a lot of ways.
I don't think "balancing" it by making it need a Feat is necessarily helpful either. I get the goal - that this should let casters be "wonderworkers", but I feel like there should be some more limits.
Also, I don't know if anyone has mentioned this, but a Reaction requires a trigger. You can't just "use your reaction" if you're not reacting to something. So this means the spell essentially couldn't be used out of combat (not without shenanigans), and inside combat, could only be used as a Reaction, and you'd presumably have to specify exactly what you were intending to react to (like Ready an action) before you said it.
So that has to go, period. That's just not how the rules work. It needs to be an Action. And if the spell has a longer casting time, you should need to follow that casting time - skipping a lengthy cast time just by dropping a single spell level is outrageous, balance-wise. If the spell normally requires a Reaction, well, you shouldn't be able to cast it with this.
You also shouldn't be allowed to skip costly consumable components with this (non-consumable, sure).
I'd also suggest, given the versatility of this spell, that you need a much harder limit on it, i.e. that either:
A) It's two levels down - so at 2nd level, it can cast Cantrips, 3rd, 1st level spells, and so on. You might not like that, but the distance in power between a lot of 1st and 2nd, or 3rd and 4th and so on level spells is extremely narrow.
Also, right now? Your 2nd-level spell is as good as Wish in many cases. Wish lets you cast any 8th level or below spell. You shouldn't be able to simulate the normal usage of 9th-level Wish with a 2nd level spell that you're upcasting. That's ridiculous. If if wasn't as powerful, it'd be less of an issue.
Even with this limit, it would still be an astonishingly useful spell, because very often a lower-level spell can just completely solve a situation, and in 5E, you are limited to having a pretty small number of spells "ready to go".
B) It can be cast once a day. This might break your idea of how the spell should work, but it would prevent it wasting huge amounts of table time and stop it becoming the centre of the game.
Personally, I'd balance this by designing a Wizard and Sorcerer subclass which each had access to it, and making it the core of each subclasses identity.